KYIV, Dec 17 – The ICU investment group expects a deceleration in GDP growth to 3.4% in 2025 compared to the expected GDP figure of 4% by the end of 2024, and at the same time predicts a slowdown in inflation to 7% from 11.5% this year, according to its updated macroeconomic forecast.

"Economic growth will likely decelerate on fiscal consolidation and moderation in household income next year. Inflation delivered an upside surprise recently due to surging food prices, but good preconditions are in place for the CPI to decelerate to about 7% by the end of 2025, implying some room for monetary policy easing in 2H25," said Vitaliy Vavryschuk, head of ICU macroeconomic research. At the same time, analysts estimate the average annual inflation this year at 6.3%, and next year they expect this figure to be at 9.9%.