Ukraine’s Ministry of Finance lowered its growth outlook to 3.5% from 4.6% due to energy infrastructure disruptions and electricity shortages. Other important factors influencing the fiscal and macroeconomic situation in the country were also the volume and frequency of external funding to cover social expenses and military aid. Due to supply shortages at the beginning of the year, Ukraine had to spend an additional USD 5 bln on military needs, which resulted in a bigger budget deficit.