Ukraine’s economy is expected to shrink by 45% this year, said Finance Minister Sergiy Marchenko, adding that his government is committed to fully servicing its debt.
Ukraine expects a bigger economic contraction in 2022 compared to the estimates of the European Bank for Reconstruction and Development (EBRD) and the International Monetary Fund, which predicted a 30% to 35% reduction in the country’s GDP amid Russia’s invasion.
“The people of Ukraine are paying a huge price and this price can not be calculated,” Marchenko told a news conference at the EBRD’s annual meeting in Marrakesh, Morocco. “What can be calculated is the forecast for GDP decline, we are around 45% this year,” he added, speaking via video link.
The country continues to meet its international bond obligations after the February 24 invasion of Russia. The country has to pay $ 1 billion for a dollar-denominated bond on September 1 and faces a $ 5 billion-month budget deficit on a monthly basis due to the war.