Ukraine’s economy to shrink minimum by 10% in 2022 due to Russian invasion: IMF report

Ukraine's economy to shrink minimum by 10% in 2022 due to Russian invasion: IMF report

Kyiv (Ukraine): Amid Russia’s ongoing military operations in Ukraine, Kyiv’s GDP will shrink by at least 10 per cent in 2022 if the war ends soon, according to an International Monetary Fund (IMF) report.

The report, prepared ahead of IMF’s approval of USD 1.4 billion in emergency financing, said Ukraine’s economic output could shrink by 25 to 35 per cent, based on real wartime gross domestic product data from Iraq, Lebanon and other countries at war, according to reports.

IMF staff in their March 7 report stated that Ukraine had an external financing gap of USD 4.8 billion, but its financing needs were expected to grow and it would require significant additional concessional financing as a result of the war.

Russian forces launched military operations in Ukraine on February 24, three days after Moscow recognized Ukraine’s breakaway regions, Donetsk and Luhansk as independent republics followed by the announcement of a “special military operation” to “demilitarize” and “denazify” Ukraine.

first published:March 15, 2022, 2:03 a.m.

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