The Organisation for Economic Co-operation and Development (OECD) has released a new overview of the economic situation in Ukraine, predicting an increase in the country’s public debt to 120% of GDP by 2026. This rise is attributed to the growing budget deficit, which experts estimate will be around 20% of GDP in 2025 and 2026, primarily due to defense spending.
This is reported by Kyiv24
It has been reported that Russian aggression has caused extensive destruction in Ukraine, including the displacement of approximately a quarter of the population and the destruction of housing and infrastructure amounting to about 2.5% of the country’s GDP. The organization notes that since the onset of the full-scale invasion by Russia, there have been over 30 massive strikes on energy infrastructure facilities, resulting in billions in damages.
Economic Challenges and Recommendations for Ukraine
According to analysts, during the war, the pace of economic growth remains modest, and the private sector plays a key role in the recovery and development of the country. The organization emphasizes the need for deeper structural reforms and the creation of favorable conditions for investment, including increasing private investment, improving access to financing, and supporting innovation.
Important recommendations include strengthening the rule of law, transparent financial management, and monetary policy aimed at curbing inflation and limiting the budget deficit. In particular, it is suggested to lift restrictions on women’s work at night and create conditions for the reintegration of demobilized soldiers and internally displaced persons into the labor market, which will contribute to economic stabilization and recovery.
Experts state that the recovery of Ukraine’s economy will require systematic and coordinated efforts, and the full utilization of the private sector along with structural reforms will form the basis for achieving stable growth in the future.