Ukraine's Economy to Stagnate, UN Details

Ukraine's economy is expected to stagnate in 2023, despite loans from the International Monetary Fund and international financial assistance, with the cost of recovery currently estimated at $411 billion, according to a report released by the UN on Tuesday titled "World Economic Situation and Prospects."

The report states, "Ukraine's economy lost a significant portion of its industrial capacity and energy infrastructure due to the war, contracting by 29.1% in 2022. Despite external financial assistance, including the IMF loan and direct budget support from the European Union and the United States, the country's economy is likely to stagnate in 2023. The long-term outlook depends on the duration and intensity of the war and the country's ability to finance recovery, which is estimated to cost up to $411 billion."

In contrast, other CIS countries and Georgia are experiencing positive economic development dynamics. The report notes, "Energy-exporting countries, including Azerbaijan and Kazakhstan, will benefit from higher oil prices due to OPEC+ production cuts. After a 1.9% decline in 2022, the overall GDP of the CIS countries and Georgia is expected to grow by 0.6% in 2023, with growth accelerating to 2.2% in 2024."