The International Monetary Fund (IMF) is considering the idea of ​​helping Ukraine with about 16 billion dollars (14.7 billion euros). Another aid from the European Union up to 18 billion euros will be added to this amount. Kiev has a economy of 136 billion euros, but these aids would not help Ukraine much in the context of the war triggered by Russia. Politico says the EU would push Kiev toward insolvency, and the country’s main need is for grants, not loans.

The inflation rate reached 26.6% in December Ukraine. The initial forecast was 28%, but the price of products did not rise as sharply as economists expect. Shopkeepers have cut prices on perishables such as meat because demand has waned and power outages, which are becoming more frequent, can lead to food spoilage. Low demand is normal because Ukraine’s economic collapse is 30%. This is the most difficult year from an economic point of view for Kyiv since the break from the USSR.

How to support the economy of Ukraine

The Ukrainian economy is based on exports of agricultural products and raw materials. And they fell by about 40% in 2022. In time, the monetary policy rate, the benchmark for the cost of credit, reached the level of 25%. Economic growth is stunted by this increase. The central bank has a less optimistic forecast for the evolution of the economy in 2023 and 2024 compared to last year as the population and businesses begin to adapt to the new reality they are experiencing. At the same time, he took the decisions made in Moscow during the last working period that warthe could extend over several years.

Russia has blocked access to economic information since the beginning of the war. The Moscow Institute of Statistics is headed by a subordinate of the economic adviser to the president. Vladimir Putin. The Russian economy seems quite resilient in the vagaries of Western sanctions. The central bank estimated an economic contraction of 3% for the past year. EU sanctions had a say on the Gross Domestic Product. Inflation for the whole of last year is estimated at 12%, lower than in many countries in Europe, even if in the spring it reached the level of 18%.

Analysts have pointed out that real inflation has reached a maximum of 66%, and many experts expect that in 2023 the economic decline will be accentuated. The central bank took the benchmark interest rate to 7.5%. Russia’s economy is small even though it is the country with the largest territory in the world and which is rich in natural resources. Taiwanul, a small island, has a better economy than Moscow.

What is happening to the economy of Republic of Moldova

Republic of Moldova it is one of the smallest economies in the moon, 10.5 billion euros, and one of the countries that suffered quite a lot from the war even though it did not help Ukraine in any way. Inflation in December reached 30%, and the highest percentage was recorded last fall, 35%. This happened because energy prices which exploded. Chisinau is dependent on energy imports. Food products also experienced significant increases.

Even though wages were raised, they could not keep up with inflation. Moldovan authorities expect GDP to be 3% lower than last year. The benchmark interest rate in December fell from 21.5% to 20%. imf will also help Moldova with approximately 27 million dollars, and the USA will send 30 million dollars to pay for imported energy, he informs. Bani.md.