KYIV, Dec 22 - The annual inflation rate in Ukraine is expected to gradually decrease from 30% at the end of 2022 to approximately 22.5% at the end of 2023, according to the Memorandum on Economic and Financial Policies of the IMF Program Monitoring with Board Involvement (PMB).

This reflects the residual effects of disruptions in supply and destruction of production capacity amid lower global energy prices, the document said.

"The current account is expected to move to a deficit of around $5.7 billion in 2023, following a projected surplus of $6.4 billion in 2022. This reflects a widening in the trade balance, as the recovery in export proceeds is expected to be slow, while import demand is expected to accelerate, due to continued demand for fuel, equipment, and materials for repair and rehabilitation. Sizable external financing inflows should support FX reserves levels of around $21 billion by end-2023, equivalent to 2.5 months of imports," the document says.