Cooperation between CES and GET: Monthly Report on Ukraine’s Economic Developments in November 2024

As part of the monthly joint events, the Centre for Economic Strategy (CES) and the German Economic Team (GET) presented the latest updates on Ukraine’s economy. This edition placed a particular emphasis on Ukraine’s fiscal policy.

We were delighted to welcome Sergii Marchenko, Ukraine’s Minister of Finance, as a key participant. The event was introduced by Garry Poluschkin, representing the German Economic Team.

Ukraine’s Economic Developments in November 2024
The report highlights the following key trends:

• GDP Growth:
  Ukraine’s GDP increased by 4% year-on-year, despite intensified hostilities and recurring power outages, which negatively affected business expectations.
• Fiscal Sector:
  November saw record state budget revenues. At the same time, Ukraine received $6.5 billion in foreign budgetary assistance, while growth in consumption taxes stagnated.
• Inflation and Monetary Policy:
  Inflation rose to 11.2%, the central bank raised the key interest rate to 13.5%, and international reserves increased to $39.9 billion.
• Sectoral Trends:
  Agricultural exports via seaports accounted for a record 86%, while steel production continued its decline. IT exports rebounded in autumn after hitting a wartime low in August.

The November edition focused on Ukraine’s fiscal policy. Due to the war, expenditure significantly exceeds income. While the Ukrainian government has introduced several reforms to boost its revenue base, these measures alone will not suffice to cover all expenses. As a result, Ukraine will remain reliant on international financial assistance in the coming year.

The event was moderated by Hlib Vyshlinsky, Executive Director of CES. Panelists included:

• Sergii Marchenko, Minister of Finance of Ukraine
• Olena Bilan, Chief Economist at Dragon Capital
• Andriy Moskalenko, First Deputy Mayor of Lviv

The full monthly report is available here.