This growth continues the trend of recovery after Ukraine's economy shrank by about 29% in 2022. In 2023, the economy rebounded with a 5% growth, according to the International Monetary Fund.
Read also: Ukraine's economy: bumpy road in 2024, speeding up ahead — NBU report
Ukraine’s central bank (NBU) has improved its annual inflation forecast to 8.2% for 2024, down from the previous forecast of 8.6%. In March 2024, year-on-year inflation in Ukraine fell to 3.2%, continuing the downward trend from a peak of over 26% in 2022.
However, British intelligence warns that inflation is likely to rise in the second half of 2024. The NBU predicts that the effects of last year's bumper harvest will weaken, consumption will recover further, and business spending will increase due to the war.
Improving economic conditions in Ukraine will likely allow the regulator to gradually reduce the key policy rate.
At the end of April 2024, the NBU cut the key policy rate to 13.5% from 14.5% in March 2024, below the wartime peak of 25%.
The key policy rate was raised from 10% to 25% in June 2022. Since then, the central bank has left it unchanged eight times. On July 27, the NBU cut the key policy rate to 22% for the first time in 13 months
Read also: Economy Ministry unveils four-year reform plan in exchange for EU's €50B aid program
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Read the original article on The New Voice of Ukraine
Section: Nation
Author: Богуслав Романенко
