A deficit of 3-4% of GDP: experts predict money printing

The threat of single-handedly coping with the budget deficit in 2024 is becoming real for Ukraine. As noted by economist Oleg Ustenko, if financial aid from the US is significantly reduced or canceled altogether, the country will have to look for other ways to cover the "budget hole".

According to the expert, this year Ukraine received 7.8 billion dollars from the USA to finance various needs, including to cover the budget deficit. But in the next year, such support may be significantly reduced.

"Next year there are real risks that the amount of assistance will be reduced or even canceled. This means that Ukraine will have to look for additional sources of funding," Ustenko said on the air of the Vechir.LIVE .

According to the expert, in the event of a deficit of 3-4% of GDP, the Ukrainian government can resort to hryvnia issuance. According to him, such a step will temporarily cover budget costs, but carries high risks for the economy.

"Monetization of the state budget will, in fact, mean printing money without real security. This can lead to an increase in inflation and a collapse of the purchasing power of the hryvnia," Ustenko stressed.

Given the possible lack of support from international partners, the government of Ukraine needs to look for additional sources to supplement the budget. However, according to the economist, it will be difficult to implement this quickly.

spot_imgspot_imgspot_imgspot_img

popular

Share this post:

More like this
HERE

Makiv Day 3 July: What is a special holiday and what prohibitions exist

On July 3, believers honor the memory of St. Anatoly, Patriarch of Constantinople ...

The heat returns to Ukraine: forecasters warn about +34

The weather in Ukraine will start to change dramatically from July 3 ...

Signs of high blood sugar in which is worth paying attention to

High blood sugar is a characteristic sign of diabetes ...

In the Sumy region detained a woman for an attempt to sell a baby

Sumy region prosecutors sent an indictment against 35-year-old ...

The benefit of fiber for digestion and immunity

Fiber is an important component of healthy eating contained in ...

The Cabinet is planning new taxes to fill the budget: sweet drinks, cigarettes and fuel are going up

The Ministry of Finance of Ukraine plans to introduce a new excise tax on ...

In Poland and Latvia there was a criminal group of Ukrainians who stole people

Polish law enforcement agencies together with partners from Latvia, Lithuania ...

In the white stone in Lviv region once stood the castle worthy kings

Today the village of White Stone in Lviv region attracts tourists to its ...