**Ukraine to Need $177 Billion in External Financing**
The International Monetary Fund (IMF) has released a new economic report for Ukraine. The report says that Ukraine will need up to $177.2 billion in external financing by 2026.
**War’s End Projected Late 2025 or Mid-2026**
The IMF projects that the war between Russia and Ukraine will end in late 2025, but there is a possibility it could last until mid-2026. This is based on two different scenarios: a baseline forecast and a downside scenario.
**Economy Showing Resilience**
Despite the ongoing war, Ukraine’s economy has shown resilience. The report says that real GDP growth reached 4% in 2024, which is an increase of one percentage point from the previous review.
**Less Severe Winter Impact**
The IMF reports that winter’s impact on the economy may be less severe than expected. This is due to increased business investments in power generation, enhanced import capabilities from Europe, and ongoing infrastructure repairs.
**Inflation Concerns Persist**
However, inflation concerns persist in Ukraine. The IMF has revised its forecast upward to 10% by year-end. This is because of accelerating raw food prices affecting basic commodities, combined with the effects of previous currency depreciation, wage growth, and energy costs.
**Looking Ahead to 2025**
The IMF maintains its real GDP growth projections at 2.5-3.5% for 2025. This outlook factors in potential benefits from accelerated energy capacity repairs in 2024 and new capacity introduction in 2025.
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