Ukraine will enter 2022 with a solid safety cushion thanks to sound fiscal and monetary policies, strong external commodity markets, and a resilient banking sector. However, sluggish economic growth and high inflation will be a grain of salt. Russia’s aggression toward Ukraine will be the key non-economic factor to closely monitor next year and beyond. Repetitive maneuvers of Russia’s troops along Ukraine’s borders will continue to disturb business and damage investor sentiment toward Ukraine.
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