Cabinet to ensure annual GDP growth of 5% from 2023 – Shmyhal

The Budget Declaration for 2022-2024, approved by the Cabinet early this week, lays down the growth of gross domestic product in Ukraine of at least 5% annually starting 2023.

"Macroeconomic stability will be ensured, and the dollar rate is expected to stay the range of UAH 28-29. Thanks to the implemented reforms, as early as 2023 we will be able to reach a steady trend of economic growth, in fact, of 5% annually," Shmyhal wrote on Telegram.

"The budget deficit will be reduced by almost half, returning to the 3% target already from 2023. The public debt is set to be reduced to below 50% of GDP. This means we will spend less on servicing debts and more – on health care, defense, and education," the prime minister added.

Read alsoEconomy recovering from coronacrisis – PM ShmyhalAccording to the head of government, wages in the next three years will be growing by approximately 8-10% per year, taking into account inflation, which in 2022 will stand at 6.2%, and in 2023 return to the 5% target.

Background

• The Cabinet of Ministers at an extraordinary meeting on May 31 approved the Budget Declaration for 2022-2024.
• The 2021 State Budget provides for a 4.6% growth of the gross domestic product.
• The International Monetary Fund predicts that the Ukrainian economy in 2021 will grow by 4%.
• The World Bank expects a moderate recovery of Ukraine's economy in 2021 with GDP growth of 3.8%.