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Ukraine’s GDP will fall by more than a third, inflation will accelerate – UNIAN

At the same time, financing the needs of the budget and replenishing international reserves are possible thanks to large-scale financial assistance from partner countries.

The Ukrainian economy is suffering because of the war / photo ua.depositphotos.com

As a result of the war in Ukraine, the gross domestic product is expected to fall by more than a third and a significant acceleration of inflation.

This is stated in the report of the National Bank of Ukraine on the financial stability of the country.

The NBU noted that in order to avoid uncontrolled devaluation and capital outflow, they temporarily fixed the exchange rate and introduced currency restrictions, supporting the foreign exchange market with interventions.

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At the same time, financing the needs of the budget and replenishing international reserves are possible thanks to large-scale financial assistance from partner countries.

“The fall in economic activity will have a long-term negative impact on the income of businesses and the population, and therefore on the quality of the loan portfolio of banks. This will also lead to a decrease in demand for financial sector services,” the National Bank said.

Recall that, according to the spring World Bank forecast output in Ukraine is likely to fall by 45.1% this year as the Russian invasion has closed businesses, reduced exports and made economic activity across large swathes of the country.

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