Ukraine’s economy is demonstrating resilience this year, with GDP growth projected to reach 4.7% after falling by 29.1% last year, Finance Minister Sergii Marchenko said at a meeting with the G7 financial bloc on the sidelines of the IMF and World Bank meetings in Marrakech on Thursday in Marrakech.
“Inflation is falling faster than expected: to 7.1% in September 2023 from 26.6% in 2022. Domestic borrowings have exceeded the plan and have already reached more than $11 billion since the beginning of the year. Thanks to our partners, international financial support is rhythmic and predictable, totaling $33.8 billion in 2023,” Marchenko was quoted as saying in a press release from the Ministry of Finance on Thursday evening.
The discussion, which was attended by finance ministers and central bank governors of the G7 member states, the IMF, the World Bank and the European Commission, focused on Ukraine’s financial system, the state of implementation of structural reforms and cooperation with international financial organizations and the EU in the context of meeting budgetary needs in 2024.
The Minister emphasized that the Government of Ukraine is committed to implementing the reforms identified in cooperation with international partners.
In their turn, finance ministers of a number of countries and leaders of the EU, IMF and World Bank assured to maintain their support for Ukraine as long as necessary, the release said.
Although the joint efforts of the Ukrainian government and international partners have ensured the full provision of all public services to the population for nine months in a row, avoiding monetary financing, Marchenko emphasized that the uncertainty provoked by the war remains.
According to him, the 2024 budget envisages the accumulation of maximum resources for the security and defense sector, with expenditures at the level of the current year, as well as the creation of conditions for the development of the domestic defense industry. At the same time, it provides for an increase in spending on social protection and humanitarian aid, as supporting Ukrainians is an important priority of the Ukrainian government, and therefore the state budget deficit is projected at $42.9 billion.
“I am very grateful to our partners for their assurances of continued support for the next year. We already have agreements with such countries as Japan and the UK. Also, Ukraine and the EU are actively working on the creation of the Ukraine Facility for 2024-2027 with a total volume of EUR 50 billion,” the Minister of Finance said.
He added that Ukraine’s fulfillment of the conditions set in cooperation with the IMF will allow it to receive $5.4 billion under the EFF program next year.
“However, even with all these commitments, the deficit remains high,” Marchenko added and expressed hope that donors would help Ukraine cover social and humanitarian spending in full.
