The International Monetary Fund (IMF) has upgraded real Ukraine’s GDP growth for 2023 to a range of 1% to 3% against the previous range of -3%to +1%, although the outlook remains highly uncertain as the war continues, IMF’s envoy to Ukraine, Gavin Gray, said on May 30.
“The Ukrainian economy has shown remarkable resilience – economic activity in the first quarter rebounded strongly, as the energy system rapidly recovered from attacks on critical infrastructure, foreign exchange markets stabilized, and inflation started to decline decisively,” Gray said in a statement, following discussions with Ukrainian officials on the country’s 4-year EFF Arrangement in Vienna, Austria, from May 23-30, 2023.
A stronger recovery is expected as the economy progressively adapts to war conditions, Gray said.“Steady implementation of structural reforms under the program, including in governance, anti-corruption, and public investment management, will strengthen institutions and lay the foundations for strong and sustained growth,” the IMF representative said.
“They will, in particular, enhance the environment enabling recovery and reconstruction efforts, which the authorities are now initiating, and thus help foster much-needed private-sector investment.”