Due to the reduction in Western assistance, Ukraine will not have enough money even for key sectors

Ukraine’s budget deficit is increasing due to problems with foreign aid inflows and Ukrainian businesses are facing a severe shortage of labor. This was reported by the “Strana” publication, citing a report from the National Bank in its macroeconomic and monetary review.

Ukrainian enterprises are experiencing difficulties in hiring workers due to mobilization and migration of people. The NBU notes an increase in the deficit of both skilled and unskilled workers. As a result, businesses are trying to attract pensioners and disabled individuals to work.

The state budget deficit in January-February 2024 increased due to a decrease in external inflows. The exact size of the deficit is not specified by the NBU, but it is reported that Ukraine received external financing of only $1.2 billion in the first two months of the year, of which $0.9 billion were grants. It is known from previous NBU reports that in January-February 2023, Ukraine received international assistance of $6.3 billion, so the scale of the shortfall can be estimated. In addition, resource exports are increasing, while domestic trade is declining. Sales of automobiles have also increased, but market trends mainly show luxury cars.