IMF Approves $1.1 Billion Aid for Ukraine

The International Monetary Fund (IMF) has approved $1.1 billion in aid to Ukraine as part of its ongoing $15.6 billion loan program, bringing total disbursements to $9.8 billion. Despite the aid, the IMF has updated its forecasts for Ukraine's economy, predicting that the war could last until mid-2026 under a more intense scenario, leading to a projected external financing deficit of $177.2 billion. The baseline scenario maintains that hostilities will end by the end of 2025, with real GDP growth expected to rebound to 4% in 2024 but face a contraction of -2.5% in 2025 under the negative scenario. Inflation forecasts have also been adjusted upward, now estimated at 10.3% by the end of 2024, primarily due to rising prices of food and energy. The IMF warns of significant uncertainty regarding the trajectory of the war and its economic impact, emphasizing the ongoing humanitarian and social losses caused by the conflict.