Ukraine’s National Bank (NBU) has downgraded the gross domestic product (GDP) growth forecast for 2023 from 4 percent to 0.3 percent, citing security risks.
“The deterioration of the forecast compared to the October estimates was primarily caused by consequences of energy terror and the revision of the main assumption of the duration of security risks,” the NBU said in a statement.
Among the risks to the Ukrainian economy this year, the bank listed a weaker grain harvest, destruction of energy infrastructure and a partial port blockade.
In 2024, the Ukrainian economy has the potential of increasing by 4.1 percent driven by a decline in security risks, along with a resumption of proper operation of ports, an increase in harvests, and a gradual recovery in production.
According to preliminary estimates, Ukraine’s GDP declined by a record 30.4 percent last year due to the Russia-Ukraine conflict