Financial support from partners may decrease, and this poses a significant risk to Ukraine

Financial support from partners may decrease, and this poses a significant risk to Ukraine, as stated by Maria Repko, Deputy Director of the Centre for Economic Strategy in The New York Times.

In 2024, Ukraine’s budget deficit could reach 21% of GDP. To cover it, it is necessary to attract $42 billion in financing from international partners. 

“That sum may prove difficult to secure as support for Ukraine wanes in the United States, by far Kyiv’s biggest financial backer, and as the war between Israel and Gaza diverts the world’s attention. The situation looks really worrisome,” commented Maria.

At the same time, the Ukrainian economy is adapting to the war. The opening of new trade routes bypassing the Russian blockade is helping to restore agricultural exports, which comprised the main part of Ukraine’s pre-war income.

According to the World Bank, Ukrainian exports are expected to grow by 15% next year. 

The resilience of the Ukrainian economy is also evidenced by record electricity exports in September.

“We haven’t had any shortages of electricity since mid-February. That was the first positive factor that pushed output up,” commented Olena Bilan, a CES supervisory board member and director of the analytical department at Dragon Capital.

Source: The New York Times.