WORLD BANK CUTS INFLATION FORECAST FOR UKRAINE TO 20% BY END 2022
The World Bank has lowered its inflation forecast for Ukraine to 20% by the end of 2022 from its April forecast of 15% inflation, said Arup Banerji, regional director of the Bank. worldwide for Eastern Europe (Belarus, Moldova and Ukraine), at Interfax- Ukraine.
“Inflationary pressures are increasing. Therefore, at this stage, inflation should continue to rise and could reach 20% in December against 15% in our April forecast,” Banerji said in an exclusive interview with Interfax-Ukraine.
Banerji said rising inflationary pressure is partly due to the need to cover fiscal needs in March-May.
“International partners have recognized the financial challenges, so they have committed approximately $20 billion in financial assistance to Ukraine. Despite these significant commitments, the timing of repayments will continue to be critical to meet Ukraine’s current needs,” said the World Bank Regional Director.
The World Bank also maintained its forecast of a sharp 44% contraction in Ukraine’s GDP in 2022.
“However, due to the length of the war, as hostilities continue in several parts of Ukraine, we cannot be relatively sure of our preliminary medium-term recovery forecasts,” Banerji said.
FORECASTS, INFLATION, WORLD BANK