Policy challenges mount as war rages on

According to early estimates, Ukraine’s GDP experienced a 40%-45% contraction in March in the wake of Russia’s invasion. In our view, the prompt response from Ukraine’s monetary and fiscal authorities, along with stronger fundamentals compared to the 2014-2015 crisis, helped cushion the blow from Russia’s invasion and likely prevented an even deeper economic drop.

What you will learn:

• How direct debt monetisation by NBU became the main source of financing
• Why the fiscal outlook remains challenging 
• The impact on inflation and what this could mean for overall financial stability and growth