The World Bank projects that the Ukrainian economy will grow by 3.2% by the end of 2024. Further forecasts indicate a 2% GDP growth in 2025 and a significant increase to 7% in 2026.
Factors Affecting Economic Growth
The anticipated slowdown in economic growth for next year is attributed to:
- Significant damage from the Russian invasion: Continued conflict has resulted in substantial infrastructure losses and economic disruption.
- Major power outages: Energy supply issues have hindered industrial production and general economic activities.
Regional Perspective
Antonella Bassani, World Bank Vice President for Europe and Central Asia, commented on the resilience of countries in the region:
"The countries of the Europe and Central Asia region have skillfully weathered the recent shocks of high inflation, the consequences of Russia's invasion of Ukraine, and weak expansion in the European Union, the region's key export market."
She emphasized the importance of investing in education to bolster long-term productivity:
"For greater growth of labor productivity in the long term, it will be important for the countries of this region to significantly improve the quality of both secondary and higher education, which is of key importance for strengthening human capital and creativity."
