IMF Approves $400 Million Disbursement to Support Ukraine's Budget Amid Ongoing Conflict

The IMF has completed a review allowing a $400 million disbursement to Ukraine for budget support. Despite challenges, Ukraine's economy remains resilient. However, growth is expected to slow in 2025 due to labor market issues and energy attacks. Total disbursements under the program are now $10.1 billion.

The International Monetary Fund (IMF) has successfully completed a review permitting the release of $400 million in financial support to Ukraine, intended to bolster its national budget. This decision, announced on Friday, underscores Ukraine's economic resilience, even amidst significant challenges on multiple fronts.

Despite maintaining stability, Ukraine is expected to experience an economic slowdown in 2025. According to the IMF, factors such as a tight labor market and ongoing assaults targeting the country's energy infrastructure will contribute to this deceleration. The latest disbursement lifts the total funding under the IMF-supported program to $10.1 billion.

The recent review marks the seventh of Ukraine's $15.5-billion Extended Fund Facility program. Amid ongoing conflict, with Russia's invasion taking a harsh toll, Ukraine's macroeconomic stability is remarkably fortified, thanks in part to significant international aid. As the country profoundly depends on foreign assistance to sustain its economy, efforts to end hostilities continue.

(With inputs from agencies.)