Economics
IMF Sees Deep Ukraine Recession, Working on Trust to Boost Funds
- IMF is setting up a trust to channel support to Ukraine
- Lender sees economy shrinking as much as 35% in 2022 from war
A destroyed apartment building following shelling in the northwestern Obolon district of Kyiv on March 14.
Photographer: Aris Messinis/AFP/Getty ImagesThis article is for subscribers only.
The International Monetary Fund said that Ukraine likely needs $4.8 billion in external financing amid a deep recession this year and is working on setting up a fund to help countries steer more resources to the nation invaded by Russia.
Ukraine’s gross domestic product will contract 10% in 2022 if there’s a prompt resolution to the war, IMF staff estimated in a report released on Monday. That compares with declines of 6.6% in 2014 and 9.8% in 2015 after Russia annexed Crimea and a 3.2% expansion last year, when the nation benefited from a record grain harvest and strong consumer spending.