Posted 12/19/2023, 3:21:00 PM
Ukraine Faces $43 Billion Budget Gap in 2024, Reliant on Uncertain Foreign Aid
- Ukraine faces a $43 billion budget deficit in 2024 that it hopes to fill mostly with foreign aid, but this is not yet secured
- If Ukraine falls billions short on financing next year, it could threaten macroeconomic stability and its IMF program
- Options like tax hikes or printing money bring economic risks, so Ukraine wants to avoid these to fill budget gaps
- Despite positives like single-digit inflation and signs of business adaptation, uncertainties like worker shortages and trade deficits persist
- Ukraine will likely remain reliant on foreign financing in the years ahead, even as Western donors show signs of aid fatigue