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

Op Artem's exader's wife purchased real estate in Dubai for $ 4.3 million

Irina Shilo, the wife of the former adviser to the office of the President and the officer ...

Slavia singer waits for a baby after divorce from Dzidzo

Ukrainian singer Slavia, former wife of artist Dzidzio (Michael Khoma), ...

Yasno CEOs told who risks staying without light

Yasno CEO Sergey Kovalenko commented on a wave of messages in ...

Kyiv City Council MP Malyarevich declared 12 plots and apartment for 5.6 million

Provisional Chairman of the Commission of the Kyiv City Council on Architecture, Urban Planning and ...

MP from the "servant of the people" went to the EU and did not return

Member of the Berehiv District Council from the Party "Servant of the People" and ...

The deputy director of the educational institution collected data on the Armed Forces for the Russians

In the Sumy region, the Security Service of Ukraine exposed and detained ...

The Ukrainian national team retained the 25th place in the FIFA ranking after the League Nations matches

International Football Federation (FIFA) updated the rating of national teams for ...