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the destruction of production facilities, and logistical restrictions for exporters.
Ukraine presents the G7 financial block with its economic prospects, which the IMF assesses positively. Ukraine's economy is showing stability during the current year, and GDP growth is forecast to be 4.7%, said Finance Minister Serhiy Marchenko. "Inflation is falling faster than expected: 7.1% in September 2023 from 26.6% in 2022. He added that domestic borrowing has exceeded forecasts and reached more than $11B since the beginning of the year," he added. In addition, Marchenko said that the 2024 budget will allocate maximum resources for the security and defence sector and the development of the domestic defence industry. In its turn, the IMF expects that Ukraine's GDP will demonstrate growth dynamics in the coming months and exceed forecasts due to efforts to stabilize macroeconomics and restore economic activity, said Alfred Kammer, director of the European Department of the IMF. The IMF representative expressed confidence that Ukraine’s $115B international support package will move forward over the next four years, as promised by the fund.
Ukraine’s Minister of Economic Development and Trade Yulia Svyrydenko said
commented
Ukraine’s key sectors grew between January and September this year, Economy Minister Yulia Svyrydenko said on October 9, citing the Ministry's preliminary estimates.
Construction topped the list, growing by 18.4% in the first half of 2023.
Funding for the restoration of damaged infrastructure and buildings, including in the liberated territories, as well as increased demand for mortgages under the “eOselia” affordable loan program contributed to the sector’s growth, according to Svyrydenko.
Production rates are recovering in the industrial sector, boosting machine building by 12.9% and furniture production and machinery repair by 11.6%.
New supply chains and a slowdown in energy and material costs benefited the sector.
Food processing grew by 12.1%, aided by increased harvest volumes in all major crops.
The processing industry saw the lowest growth with 3.1%.
Svyrydenko said that stable demand in the domestic market bolstered domestic trade amid decreasing inflation rates from 26% y/y in January to 8.6% y/y in August,
that by the end of this year, Ukraine will experience GDP
growth of about 4%, according to the Ministry of Economy’s forecast. “Almost
all sectors are showing positive trends. In particular, in agriculture, we are
recording an increase in harvest compared to last year. In industry, production
rates are gradually recovering—we are experiencing over 10% growth in
mechanical engineering, food industry, and furniture production. Construction
is increasing due to the continuation of restoration works, there is a revival in
demand for the eOselia mortgage program, which, in turn, will give an impetus
to the activation of the primary real estate market,” Svyrydenko
during the Dialogues on Resilience event held in Kyiv last week.
30 UKRAINE Country Report November 2023 www.intellinews.com