Ceasefire 'could give 5% boost to Ukraine economy next year'

The war-torn Ukrainian economy could expand by 5% next year if a ceasefire is agreed, the European Bank for Reconstruction and Devel- opment (EBRD) has predicted - but prospects for reconstruction depend on a lasting peace.

- Heather Stewart

The London-based lender has invested $6.2bn (£4.9bn) in projects in Ukraine over the course of the three-year conflict.

It forecasts GDP growth for Ukraine of 3.5% this year, as the country bat- tles inflation caused by Russian attacks on power generation and 5% in 2026, if hostilities are halted.

Beata Javorcik, the EBRD's chief economist, said it is prepared to sup- port the rebuilding of Ukraine in the event that negotiations secure an end to the war.

"We stand ready to invest when the time comes," Javorcik said.

As Washington hails an antic- ipated agreement with Kyiv on extracting Ukraine's valuable min- eral resources, Javorcik praised the Zelenskyy government's approach to steering the economy through terri- ble circumstances.

"The positive things are that despite three years of the war, the Ukrainian government managed to maintain macroeconomic sta- bility," she said. "That's a great achievement."