The European Bank for Reconstruction and Development (EBRD) predicts a slowdown in the growth of Ukraine’s economy to 3% in 2024, compared to 5.3% in the previous year.
According to report EBRD, a record harvest supported the growth of Ukraine’s economy in 2023. However, Russian attacks on the country’s energy infrastructure may hold back further development in 2024.
Among the positive factors contributing to growth, the EBRD notes the successful restoration of electricity supply after the Russian attacks, as well as the resilience and adaptability of Ukrainian business. Timely external financing in 2023 also became a stabilizing factor, helping to reduce inflation to a target level of around 5%.
However, the prospect of a prolonged war and uncertainty about external funding in 2024 create new challenges. Limited domestic demand, labor shortages and insufficient investment may also limit growth prospects.
Among the positive aspects, the EBRD notes the opening of the new Ukrainian Black Sea export corridor.
