Ukraine’s economy shows stability during the current year, GDP growth is projected to 4.7% after a fall of 29.1% last year, Finance Minister Serhiy Marchenko said at a meeting with the G7 financial bloc on the sidelines of the meeting of the IMF and the World Bank in Marrakech on Thursday.

“Inflation is falling faster than expected: to 7.1% in September 2023 from 26.6% in 2022. Domestic borrowing has exceeded the plan and has already reached more than $11 billion since the beginning of the year. Thanks to our partners, international financial support is rhythmic and predictable, the total volume of which is $33.8 billion in 2023,” Marchenko said.

The topic of discussion, which was attended by the finance ministers and heads of central banks of the G7 member countries, the leadership of the IMF, the World Bank and the European Commission, was the financial system of Ukraine, the state of implementation of structural reforms and cooperation with international financial organizations, as well as the EU in the context of meeting budgetary needs in 2024.

The minister emphasized that the government of Ukraine is dedicated to the implementation of reforms determined in cooperation with international partners.

In turn, the finance ministers of a number of countries and the leaders of the EU, IMF and World Bank assured of maintaining support for Ukraine as long as needed, the release says.

Although the joint efforts of the Ukrainian government and international partners have ensured the full provision of all government services to the population for nine months in a row, avoiding monetary financing, Marchenko emphasized that the uncertainty provoked by the war remains.

According to him, the 2024 budget provides for the accumulation of maximum resources for the security and defense sector, with expenses at the current year level, as well as the creation of conditions for the development of the domestic defense industry. At the same time, an increase in spending on social protection and humanitarian assistance is envisaged, since supporting Ukrainians is an important priority of the Ukrainian government, and therefore the state budget deficit is projected at $42.9 billion.

“I am very grateful to my partners for their assurances of continued support for the next year. We already have agreements with countries such as Japan and the UK. Also, Ukraine and the EU are actively working on the creation of the Ukraine Facility for 2024–2027 with a total volume of EUR50 billion,” he indicated.

He added that Ukraine's fulfillment of the conditions determined in cooperation with the IMF would allow it to receive $5.4 billion under the EFF program next year.

“However, even taking into account all these obligations, the deficit remains at a high level,” Marchenko added and expressed hope that donors will help Ukraine in ensuring social and humanitarian expenses in full.