Government revises up its forecast for Ukrainian economic growth

22 May, 03:05 PM
Serhiy Marchenko, Minister of Finance of Ukraine (Photo:NV)

Serhiy Marchenko, Minister of Finance of Ukraine (Photo:NV)

The Cabinet of Ministers has improved its forecast for Ukraine's GDP growth in 2023 to 3.2%, Ukrainian Finance Minister Serhiy Marchenko wrote in an article about the adaptivity of Ukrainian business, which was published online on May 19.

Earlier predictions of economic growth were at 1%. The National Bank of Ukraine recently improved its forecast from 0.3% to 2%.

"Now we are in a much better position compared to a year ago... We have been refraining from monetary financing in 2023, and the GDP growth forecast has been raised to 3.2%," Marchenko wrote.

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Inflation is declining at a faster pace than had been expected — from 26.6% in December 2022 to 17.9% in April 2023. However, Marchenko didn't provide an updated inflation forecast.

The minister also thanked business for supporting the budget in the difficult times of full-scale, noting that amid a 29.1% fall in 2022 GDP, tax revenues increased by 2% to UAH 627.7 billion ($17 billion). The estimation was given excluding a number of factors, such as inflation and forced temporary VAT refunds, he said.

The National Bank of Ukraine reported earlier that it expects GDP to grow by 16% in the second quarter of 2023.

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