Ukraine's economic growth to slow to 3 pct in 2024: forecast-Xinhua

Ukraine's economic growth to slow to 3 pct in 2024: forecast

Source: Xinhua

Editor: huaxia

2024-05-04 00:01:45

KIEV, May 3 (Xinhua) -- Ukraine's economic growth is projected to slow down to 3 percent this year from 5.3 percent in 2023, the government-run Ukrinform news agency reported Friday, citing a recent forecast.

The significant damage to energy infrastructure and expected electricity shortages will be among the key factors affecting Ukraine's economic performance this year, according to the forecast by the National Bank of Ukraine.

Though the conflict will negatively affect Ukraine's economic activity, the country's recovery will continue due to the high adaptability of Ukrainian businesses and households, the forecast said.

In 2025 and 2026, Ukraine's gross domestic product (GDP) is expected to accelerate to 5.3 percent and 4.5 percent respectively, it said.

The improvement of consumer and investment sentiment, the gradual return of migrants, and progress in European integration reforms will be the main drivers of the Ukrainian economy in the next two years, according to the forecast.

In 2022, the Ukrainian economy contracted a record 28.8 percent due to the Russia-Ukraine conflict.