In Ukraine, inflation has decreased from 26.6% in 2022 to 5.1% in November 2023, and the need for external financing for 2024 has decreased from $41 billion to $37.3 billion.
This was announced by the Minister of Finance of Ukraine, Serhiy Marchenko.
He spoke about the year’s results at a meeting of finance ministers and central bank governors of G7 countries, the leadership of the European Union, the IMF, and the World Bank.
Among the points and figures he mentioned:
- GDP growth is forecasted to be up to 5%;
- Inflation has decreased from 26.6% to 5.1% in November 2023;
- In the first 11 months of 2023, revenues to the state budget from customs and taxes increased by $4.4 billion compared to the same period in 2022;
- In 2023, Ukraine attracted over $39 billion in external financing.
By the end of the year, donor assistance will reach approximately $42.3 billion. The minister explained that the reduction in the need for donor funds from partners was achieved by maximizing the revenues of the state budget and activating the domestic borrowing market. All capital expenditures of the state budget were also reduced.
“Defense and security are funded solely from the internal revenues of the budget, so to meet the needs of the social sphere, we rely on the assistance of international partners”, Marchenko emphasized.
It is worth noting that on December 14, the National Bank of Ukraine (NBU) decided to reduce the policy rate from 16% to 15% per annum. The regulator’s decision is in line with the slowdown in inflation and the improvement of inflation expectations. In November 2023, inflation in Ukraine decreased to 5.1%, even somewhat faster than expected. The slowdown in inflation was influenced by both the expansion of the supply of food products from the new harvest and improved expectations against the backdrop of a stronger hryvnia exchange rate.
Photo: MFU
