Jaresko: Ukraine to 2016 will increase GDP and minimization of inflation factors

Jaresko: Ukraine to 2016 will increase GDP and minimization of inflation factors

KIEV, December 15. In the Ministry of Finance guarantee real economic growth GDP at 2% and inflation at 12% by minimizing inflationary factors. This was stated on Tuesday the Minister of Finance of Ukraine Natalia Jaresko.

“The draft budget for 2016 is based on the following macroeconomic forecasts. First, real economic growth of GDP of 2%. The second inflation at 12%. It was a lot of talk about the reality of this figure, but the slowdown will be possible to reduce the influence of inflationary factors that were in 2015, namely the devaluation of the hryvnia and the increase of energy tariffs”, – she said at the conference on draft state budget for 2016.

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Jaresko also noted that the government expects the hryvnia exchange rate in 2016 will be at the level to 24.1 – 24.4 hryvnia per dollar by the end of next year, and the average price of gas for Ukraine in 2016 will be $225 per thousand cubic meters.

According to Yaresko, the draft budget also envisages increase of expenditures to 70 billion hryvnia (about $2.9 billion at current exchange rates), which will help to achieve reduction of the budget deficit from 4.1 to 3.7%.

Jaresko had previously stated that the reduction of budget expenditures will be carried out at the expense of the social sphere.

The new draft budget of Ukraine submitted to the Verkhovna Rada and should be voted in soon.

Ukraine cannot achieve economic stability without IMF loans

At the same time, Jaresko said that Ukraine without loans from the International monetary Fund (IMF) may not provide economic stability in the country.

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“Cooperation with the IMF for Ukraine is extremely important. Ukraine without the IMF cannot: can not ensure the stability of the economy and the national currency, can reduce the level of inflation,” she admitted.

According to Yaresko, the IMF is a key lender that not only provides financial support to the country, but also is a “symbol, which indicates on the correct economic path moves Ukraine”.

“If we fail to act on the IMF programme, all other possible accounts are closed for Ukraine. No one will open opportunities for us, if we are outside of the program with the IMF,” she said.

However Yaresko noted that “theoretically, Ukraine has the alternative of exit on commercial markets, but in the current situation it is impossible.” She explained this by the fact that Ukraine is in a painful situation with a high level of debt and “is only now coming out of it.” “In a year we can gradually get out of this difficult situation,” says the Minister.