Russia-Ukraine War To Continue Throughout Coming Year IMF
Date
10/20/2024 7:08:24 AM
(MENAFN- UkrinForm) The International Monetary Fund (IMF) has updated its forecast regarding the duration of Russia's war in Ukraine, now estimating that the conflict will continue at least until the end of 2025.
According to Ukrinform, this was stated in the IMF's latest report .
“Russia's war in Ukraine continues to bring a rising economic, social, and humanitarian toll. The attacks on the energy infrastructure have inflicted severe economic damage and losses, and the outlook remains highly uncertain. The war is expected to continue through the coming year, generating expenditure pressures and opening additional financing needs,” the report reads.
Despite these challenges, Ukraine is expected to maintain basic economic growth during this period.
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The report envisions that the war will“wind down in late 2025 in the baseline and mid-2026 in the downside.”
In the previous IMF forecast from June, the baseline scenario predicted the end of the war in Ukraine by late 2024. In contrast, the negative scenario extended this to the end of 2025.
The report also notes that the war's impact will remain concentrated in areas with reduced economic activity, but as the conflict drags on, its negative effects on broader economic indicators could intensify due to persistent uncertainty, a growing shortage of labor, and pressures related to defense imports.
As reported earlier, as part of international support, on October 9, the European Council approved a macro-financial assistance package for Ukraine totaling EUR
35 billion, alongside mechanisms to assist Ukraine in managing up to UER
45 billion in loans from the EU and G7 partners.
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