Kiev, Dec 25 (IANS): Ukraine will require at least $39.5 billion in external financing in 2023 to keep its economy afloat, a media report said, citing a recent International Monetary Fund (IMF) projection.

"Staff analysis suggests that external fiscal financing needs would be at least 39.5 billion dollars in a central scenario," the IMF was quoted by Interfax-Ukraine news agency as saying, Xinhua news agency reported.

Under a pessimistic scenario, which envisages that Ukraine's gross domestic product will decline by 12.5 per cent, the country's foreign financing needs will be around 57 billion dollars, the IMF said.

According to Ukrainian Finance Minister Serhiy Marchenko, external financing of Ukraine's state budget is set to reach 30 billion dollars this year.

The Ukrainian economy, which was severely hit by the Russia-Ukraine conflict, is expected to shrink by between 32-35 per cent this year after a 3.4 per cent growth in 2021.