Ukraine’s Economy: A Mixed Picture
Ukraine is facing a mixed economic situation due to the ongoing war. Despite some recovery in 2024, the country’s GDP remains 22% below pre-war levels.
Fitch Ratings analysts predict that Ukraine’s economy will grow by 4% in 2024. This growth is driven by increased trade activity, high public spending, and higher household incomes.
However, experts expect a slowdown in economic growth in 2025 due to labor and energy shortages. Fitch Ratings forecasts that the country’s GDP will grow at a slower rate of 2.9% in 2025.
A durable ceasefire could boost Ukraine’s economy in 2025-2026, according to experts. They suggest that such an event would lead to increased growth prospects for the country.
Inflation is also expected to remain high in 2025, with Fitch Ratings forecasting an average rate of 9.3%. This could put pressure on domestic demand prices due to rapid wage growth amid labor shortages and skills mismatches.
Read More @ euromaidanpress.com