Dragon Capital raises GDP growth forecast for Ukraine to 3% in 2023

MOSCOW. May 23 (Interfax) - Dragon Capital investment company, one of the leaders on the Ukrainian market, has projected that Ukraine's GDP will increase by 3% in real terms in 2023, whereas previously it expected Ukraine's GDP to decline by 0.5%.

"We have upgraded our outlook: we expect GDP growth at 3% this year," Ukrainian media quoted Dragon Capital founder and CEO Tomas Fiala as saying in an interview with Radio NV.

Power outages stopped in mid-February, and economic results over the past few months are better than expected, Fiala said.

"And we hope that the economy will grow maybe even more than 3%," he said.

Dragon Capital told Ukrainian media that it would likely update its forecast for the exchange rate and inflation as well.

Ukraine's nominal GDP in dollars declined to $160 bln in 2022 from $200 billion in 2021, Fiala said.

"This is the best result over the past decade. It was larger only in 2021. It stood at $157 billion in 2020, but at $160 billion in 2022," he said.

As reported, Ukrainian Finance Minister Sergei Marchenko said at the end of last week Ukraine's GDP growth forecast in 2023 has been increased to 3.2%, while previously the government estimated it at 1%, and the National Bank has recently raised it from 0.3% to 2%.