JRL NEWSWATCH: “Ukraine warns of pension and salary delays without western aid” – Financial Times

“Shortfall in external aid would push a recovering economy back into survival mode, says deputy prime minister.”

“Ukraine may have to postpone pay for public servants and pension payments to millions of its citizens if the EU and U.S. fail to deliver promised financial aid early next year … warn[s] [Deputy Prime Minister and Economy Minister] Yulia Svyrydenko …. [T]he Ukrainian economy … staged a recovery in 2023 with gross domestic product growth estimated by the IMF at 4.5 per cent. … The Ukrainian government is racing to cobble together money to pay for public services and benefits after promised funding from its closest allies failed to come through. It needs $37bn in external support next year. …”

Ukrainian unemployment is estimated at 18.9 per cent, yet Ukraine faces labor shortages, in part because of refugees fleeing the war. The Ukrainian government hopes that a resurgence of economic growth will encourage more Ukrainians who fled to return.

Ukrainian export routes have been impacted by war and EU border bottlenecks. Yet Ukraine has been able to post economic gains by breaking the Russian blockade in the Black Sea, reportedly seeing Black Sea shipments increase by 70 per cent in November compared with October. Ukraine is seeking more Western aid for air defense to help secure Black Sea shipping.

The Ukrainian government has sought to foster exports of valuable manufactured and processed items rather than relying so much on the export of raw materials.

Click here for: “Ukraine warns of pension and salary delays without western aid; Shortfall in external aid would push a recovering economy back into survival mode, says deputy prime minister” – Financial Times/ Ben Hall