Despite conflict with Russia, Ukraine's industry and agriculture prove resilient

On October 10, the International Monetary Fund (IMF) adjusted its forecast for Ukraine's economic growth in 2023 to 2%.

Tăng trưởng kinh tế Ukraine dự kiến giảm sâu, tiếp tục cần sự hỗ trợ tài chính nước ngoài

IMF raises Ukraine's economic growth outlook for 2023. (Source: Reuters)

The IMF expects Ukraine's gross domestic product (GDP) to grow by 3.2% in 2024.

According to the IMF, the forecast revision is due to stronger-than-expected domestic demand, as Ukrainian companies and households have adapted to Russia's special military campaign, while inflation has gradually declined and the foreign exchange market has stabilized.

Ukraine's economy shrank by about a third in 2022 after Russia launched a special military operation on February 24, 2022.

Before making the new adjustment, the IMF had forecast Kiev's economy to shrink by 3% in 2023.

Despite the conflict, Ukraine’s industry and agriculture have proven resilient, according to Ukrainian officials. With help from abroad, the country has adapted better and recovered faster than initially expected.

The Ukrainian government expects the country's GDP to grow by 5% this year and next. Preliminary government figures show that GDP in the first nine months of 2023 increased by 5.3% compared to the same period in 2022.

Source