The Ukrainian economy is suffering greatly due to the hostilities unleashed by Russia. This may lead to a decrease in the level of GDP by a third of the pre-war level.
This was stated by the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva in the Foreign Policy Live discussion.
— The destruction of the Ukrainian economy breaks my heart. We are likely to see a contraction that could be a third of what it was before the war,” said the head of the IMF.
Georgieva recalled that the IMF immediately responded to Ukraine's request for emergency financing in the amount of $ 1 .4 billion needed to keep the country functioning.
— We are also working very closely with Ukraine on how to apply the best crisis management measures so that the economy does not collapse. And I would say that money is important, but support in how to keep the financial system functioning is equally important,” the head of the Fund emphasized.
According to her, the authorities in Ukraine are doing an excellent job at war.
— We are with them on a long-term journey. Of course, we all pray that the war will end, and then a huge recovery effort will be required. Of course, the IMF will make its contribution. And let's hope that this can happen in the near future,” she added.
ReadThe default of the Russian Federation is inevitable. The IMF does not believe that this will lead to a global crisis
Recall that on March 7, the IMF estimated the fall in Ukraine's GDP in 2022 at 10%, but noted that if the war drags on, it will increase significantly. According to data from 2014-2015, when Russia first invaded eastern Ukraine and annexed Crimea, GDP fell by 6.6% and just under 10%, respectively. Then the invasion was not full-scale and so destructive.
