In accordance with forecast According to the World Bank, the growth of the Ukrainian economy in 2025 will slow down to 2%. The main reasons for this slowdown are significant economic losses from the Russian invasion and disruptions in energy supply.
“In Ukraine, significant damage from the Russian invasion and widespread power outages are likely to slow growth from 5.3% last year to 3.2% this year and 2% in 2025.”, says the World Bank report.
The institution also predicts a slowdown in economic growth in Russia, which is associated with a tightening of monetary policy and restrictions in the field of production capacity and labor force. The Russian economy is expected to grow from 3.6% in 2023 to 3.2% this year and 1.6% in 2025.
According to the World Bank, in a number of countries of Central Europe, the Western Balkans, Armenia and Ukraine, the public debt will exceed 50% of GDP this year.
It is also noted that the World Bank continues to support Ukraine in its efforts to reform higher education, providing funding for the merger of educational institutions and the modernization of their infrastructure. Support packages include laboratory equipment, learning support tools and digital infrastructure for distance education.
Overall, the World Bank predicts that economic growth in the Europe and Central Asia region will slow to 3.3% in 2024 compared to 3.5% in 2023, and in 2025 the growth rate will decrease to 2.6%.
Also this week, the board of directors of the World Bank approved the creation of a special trust fund for Ukraine, which will provide financial support in the amount of at least 10 billion dollars.
