EBRD confirms Ukraine GDP growth forecast of 3% for 2024

MOSCOW. May 15 (Interfax) - Ukraine's gross domestic product growth will slow to 3% this year from 5.3% in 2023, and will accelerate to 6% next year, the European Bank for Reconstruction and Development said.

"While 2023 growth in Ukraine - an agriculture superpower - had been supported by a record harvest, [...] damage to the country's electricity infrastructure was among factors seen likely to constrain further growth in 2024," Ukrainian media reported, citing an updated edition of the bank's Regional Economic Prospects, released on Wednesday.

The EBRD also assumed in September 2023 that economic growth would reach 3% for 2024.

An additional stabilizing factor last year was the timely receipt of external financing, which made it possible to keep inflation at the target level of about 5%, the May review said. These receipts boosted the country's official international reserves to record levels, but also increased public debt to nearly 90% of GDP.

However, "new challenges" have emerged in 2024. "Limited domestic demand, labor shortages and insufficient investments are also among factors that will likely constrain growth prospects," the EBRD said.