Ukraine’s public debt will reach 86% of GDP in 2022 — IMF

Ukraine’s public debt will increase to the dangerous level of 86% of GDP in 2022 after it declined from 61% to 49% of GDP, according to the new forecast by the International Monetary Fund (IMF).

The debt burden on Ukraine will increase as its war-ravaged economy could shrink by up to 35% this year, and its deficit in the public finance sector could increase to 17.8% of GDP.

The deficit of the public finance sector includes the state budget deficit, local budgets, social funds, state-owned companies, etc. In Ukraine, in recent years, it has practically coincided with the state budget deficit, but earlier it was higher due, in particular, to the deficit of the state energy giant Naftogaz Ukrainy. In 2021, Ukraine’s state budget deficit was at 4% of GDP.