€1,2 billion from the European Union (EU) for defence and where the money will go
The European Union transferred €1,2 billion to Ukraine under the Ukraine Support Loan programme. Prime Minister Serhii Koretskyi said on 7 October that these funds will be allocated to immediate defence needs.
This tranche is part of a longer chain of international assistance intended to cover budgetary and operational security needs. For the government it provides additional short-term resources but does not replace long-term financing sources.
World Bank downgrades GDP growth forecast
The World Bank, in its “Economic Outlook for Europe and Central Asia” report published on 6 October, revised its forecast for Ukraine. The bank estimates that real gross domestic product (GDP) will grow by 1,2% in 2026 and by 1,5% in 2027.
The 2026 estimate was downgraded immediately by 2,5 percentage points compared with the April outlook, when growth of 4% had been forecast. This reflects risks from war-related spending and external shocks that are restraining the economy’s recovery.
International reserves: level and trend
Ukraine’s international reserves stood at $47 101,8 million as of 01 October 2026, preliminary data show. In September they fell by 3,2% according to data from the National Bank of Ukraine (NBU).
International reserves are foreign-currency assets and gold holdings that the NBU can use to cover the balance of payments and to stabilise the hryvnia. A 3,2% monthly decline in reserves sharpens attention on the sources of import financing and the need for external borrowing.
Deposit market: where Ukrainians are putting their savings
Activity has returned to the deposit market over the past two weeks: banks with retail deposit portfolios from 2 billion UAH have been actively adjusting yields on hryvnia deposits. Decisions were taken both to raise and to lower rates, so there was no single dominant trend.
The headline that “Three banks took 61% of all household deposits” reflects the concentration of funds in large institutions. Where it is currently most profitable to place savings and how much one can earn on a deposit in a large bank can be found in the latest review by Minfin.
Economic freedom ranking and Ukraine’s position
In the Economic Freedom of the World 2026 ranking, Ukraine placed 134th out of 165 countries and territories, receiving a score of 5,68 out of 10. Previously, in the 2025 edition, the country was 143rd with a score of 5,24.
The study is prepared by Canada’s Fraser Institute, the US Cato Institute and a network of partner think-tanks. The nine-place improvement reflects some positive changes, but the overall score remains in the lower part of the list.
