World Bank worsens economy growth forecast for Ukraine

Source : 112 Ukraine

The bank estimates Ukraine's economic growth at 3.4% last year
15:34, 12 January 2022

The World Bank expects Ukraine's GDP to grow by 3.5% in 2023 instead of the 3.7 percent forecasted earlier as the WB reported.

The bank estimates the Ukrainian economy growth last year at 3.4% after a decline of 4% in 2019.

Related: Economic zones might be created in Donbas

The agency noted that tensions around Ukraine pose risks for the entire region.

The bank predicts that growth in Eastern Europe will be the weakest among subregions in Europe and Central Asia, slowing by half from 3.1% in 2021 to 1.4% in 2022.

“The subdued outlook, particularly for private investment, reflects ongoing geopolitical tensions in Ukraine and the impact of economic sanctions on Belarus’s economy, which is expected to contract in 2022,” the report states.

Related: Economic results of Ukraine: No "tiger dash" expected in 2022

The World Bank expects that if geopolitical tensions do not continue, improving domestic demand should help boost output in Eastern Europe to 3.2% in 2023.

On December 20, Ukraine's Finance Minister Serhiy Marchenko and regional director of the World Bank for Belarus, Moldova and Ukraine Arup Banerji signed the deal on granting Ukraine 300 million euros as a loan.



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