Economic experts in Ukraine are expressing concern about the country’s financial situation, as reported in The Wall Street Journal. The growing budget deficit, which could reach $40 billion by 2024, has become a difficult choice for the government. It was expected that Kyiv plans to cover about $30 billion through financial injections from the West.
The US and the EU are currently discussing possible new aid packages for Ukraine, but no concrete decisions have been made yet. The Ukrainian government is taking austerity measures, such as tax increases and domestic borrowing, to fill the fiscal gap. If international financial support is not received soon, the country could resort to money printing, which could lead to inflation and economic recession.
Experts note that even with external support, this may be the last time, as there is growing dissatisfaction in the EU and the US with the constant need for aid for Ukraine. They emphasize the importance for Ukraine to achieve financial independence, rather than relying solely on external support.
Dragon Capital's chief economist, Olena Bilan, expresses concern about the stability of the economy during the war, emphasizing that without it there is no point in counting on victory. She expresses indignation about the source of funds for military needs if the budget is struggling to cope with social spending.
Ukraine's President, Volodymyr Zelensky, is counting on continued support from the West, but some experts say that two years of war should have focused on strengthening the domestic economy. Meanwhile, Ukraine continues to cut subsidies, raise taxes and raise utility costs, which creates additional financial pressure on the population and could lead to social discontent.
