In 11 months of 2024, the volume of direct foreign investment in Ukraine decreased by 14% compared to the same period last year. About this reported Danylo Hetmantsev, head of the Verkhovna Rada Committee on Finance, Tax and Customs Policy.
Most of the investments are still made up of reinvested profits. If in 2023 this indicator was 75%, then in 11 months of 2024 it decreased to 64%. During this period, Ukraine’s balance of payments was reduced to a deficit of $3.1 billion, which contrasts with a surplus of $8.4 billion for the same period in 2023.
Hetmantsev noted that thanks to December’s record inflows of international financing (+$9.2 billion) and large-scale currency interventions by the NBU (-$5.3 billion), as well as considering the dynamics of foreign trade, the annual balance of payments for 2024 will be close to zero .
“This can be considered a good result both for a full-scale war and one of the signs of macro-financial stability”, — said the official.
The current account deficit remains high and stable. For the 11 months of this year, it increased to $13.9 billion, compared to $8.7 billion for the same period in 2023. According to the results of the year, the RPO deficit is expected to exceed 8% of GDP, while in 2023 this figure was 5.3% of GDP. According to the IMF’s estimates, an RPO deficit exceeding 5% of GDP in the long term is unsustainable and may pose threats to the macro-financial stability of the country.
