NBU adjusts inflation and economic forecast for 2023

The National Bank of Ukraine is preparing to revise this year's inflation forecast downward and GDP forecast upward, according to statements by Deputy Governor Sergiy Nikolaychuk published by Forbes.

According to the regulator's top official, inflation has been falling faster than expected in the July macroeconomic forecast.

"Regarding inflation, we will definitely revise its forecast for this year downward (the July forecast assumed inflation at 10.6% at the end of 2023 and 8.5% at the end of 2024). Recently, it has been declining faster than we had predicted in the July macroeconomic forecast," Mr. Nikolaychuk said.

The situation with GDP also turned out to be better than the National Bank of Ukraine expected. In its July macroeconomic forecast, the regulator predicted GDP growth of 2.9% this year.

"We are seeing a very positive situation in agriculture. This is one of the factors that influenced the decline in inflation this year - a high harvest of grain, vegetable oils, vegetables and fruits," he added.

The economy also continues to show resilience in wartime.

In addition, the National Bank of Ukraine is likely to revise its forecast for international reserves upward.