"Under the baseline, the pace of economic growth is projected to pick up only gradually in the years ahead, to around 4%, as some further progress is made in implementing structural reforms. […] Output isn't expected to reach its pre-crisis levels until 2023–24," the IMF said in a forecast after approving the $5 billion financial support program for Ukraine.
The IMF also cited enduring risks from COVID-19, the government's limited fiscal space and weak consumer demand in predicting a 1.1% rebound in gross domestic product in 2021 after a projected 8.2% contraction this year. That's despite the IMF financing, which will support rescue efforts via the budget and which unlocks an additional $1 billion from the World Bank and 1.2 billion euros ($1.4 billion) from the European Union, Bloomberg said.
According to the article, amid the deeper than expected recession and its aftermath, the central bank slashed interest rates on June 11 by 2 percentage points to their lowest level since independence from the Soviet Union in 1991.
On June 9, the IMF Executive Board approved an 18-month Stand-By Arrangement for Ukraine, with total access of $5 billion.
Let’s get started read our news at facebook messenger > > > Click here for subscribe