FINANCIAL INSTRUMENTS FOR THE DEVELOPMENT OF UKRAINE’S ECONOMY UNDER CONDITIONS OF DIGITAL TRANSFORMATIONS AND MACROECONOMIC INSTABILITY

Abstract

The article addresses the issue of ensuring sustainable economic development of Ukraine in the context of accelerating digital transformations and persistent macroeconomic instability, which has been significantly intensified by war-related challenges, structural imbalances, and global economic uncertainty. The relevance of the research is determined by the growing need to adapt financial policy instruments to new economic conditions, where digital technologies increasingly influence the effectiveness of public governance and economic resilience. The purpose of the article is to substantiate the role of financial instruments in managing Ukraine’s economic development under conditions of digitalization and macroeconomic instability, as well as to identify key directions for enhancing their effectiveness. The methodological basis of the study includes general scientific and special economic methods, such as analysis and synthesis, comparison, systematization, and structural analysis, which made it possible to assess the interaction between financial instruments and digital transformation processes. The research also applies an analytical approach to identifying the main sources of macroeconomic instability and evaluating their impact on the functioning of fiscal, tax, and investment mechanisms. The results of the study demonstrate that digitalization significantly transforms traditional financial instruments, increasing their transparency, flexibility, and efficiency. It is substantiated that the integration of digital technologies into fiscal and tax policy contributes to improved resource allocation, reduction of administrative barriers, and strengthening of financial stability. The research confirms that fintech solutions and digital platforms enhance financial inclusion and support innovative entrepreneurship, which becomes particularly important under conditions of economic shocks and limited investment resources. The practical value of the article lies in the possibility of applying its conclusions in the development of state financial policy, particularly in designing digital solutions aimed at improving fiscal management, stimulating innovative business activity, and supporting post-war economic recovery. The findings can be used by public authorities, and researchers as a basis for further improvement of financial regulation mechanisms in the digital economy.