The Ukrainian economy is recovering somewhat, despite Russia’s ongoing invasion. This is what the International Monetary Fund mentions in its estimates of the economy of the Eastern European country.
Last year, when Russia invaded Ukraine, the Ukrainian economy shrank by about 30%. Six months ago, the International Monetary Fund projected that Ukraine would experience another 3% contraction this year. But the country’s domestic demand is recovering faster than expected. According to the International Monetary Fund, businesses and households appear to be adjusting to the war in the country. The sharply rising inflation in Ukraine is clearly decreasing.
The United Nations Global Financial Stability Organization now expects 2% growth in Ukraine this year. Next year, the rate of economic progress is expected to rise to 3.2%.
This means that Ukraine has not yet recovered from the economic blow of the war. Despite this decline, inflation remains very high. Last year, prices in Ukraine rose by more than 20 percent, and this year, according to International Monetary Fund estimates, slightly less than 18 percent. Next year, prices will rise by another 13 percent.
Russia is also seeing economic growth again this year. Due to international sanctions and corporate boycotts, the Russian economy shrank by 2.1 percent last year. The International Monetary Fund expects growth of 2.2 percent this year and 1.1 percent next year. According to the Fund, this is due to the stimulus measures taken by the Russian government. The IMF also sees investments in Russia picking up again and consumption showing resilience. As in other European countries, the Russian labor market is currently tight, making it not difficult for Russians to find work.
Editorial / National Ports Agency
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