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| Ukraine's economy is growing strongly. (Source: Asiatimes) |
Explaining the above strong growth, Bloomberg news agency said that Ukraine's high GDP growth in the second quarter of 2023 was due to the low comparison base of the same quarter of 2022 - the time right after Russia began its military campaign in this country.
In parallel, Ukraine's GDP is also driven by a strong increase in domestic consumption.
“People are getting used to the conflict,” said Olena Bilan, chief economist at Kiev-based investment bank Dragon Capital. “Life goes on and amid the troubles, people want to enjoy themselves by shopping or traveling .”
The National Bank of Ukraine predicts that the economy will grow by 2.9% this year. This forecast will be revised in October.
Assessing economic prospects is important in the repayment of GDP-backed loans. These are financial instruments issued by a country to raise capital from international investors or creditors, linked to the conditions of GDP developments.
Kiev must repay the debt if Ukraine’s growth exceeds 3%. The government is currently seeking to settle its international debt by 2024, after a two-year moratorium imposed in August 2022 due to the conflict with Russia.
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