Bloomberg predicted the growth of Ukraine’s economy for the first time in two years


According to Bloomberg, grow the Ukrainian economy is recovering helped the growth of capital investment budget costs, and the level of consumption of the population.

Bloomberg notes that in recent years, the economy of Ukraine stabiliziruemost. The hryvnia, which in 2015 has depreciated by a third, stabilized, Inflation fell below 10%. In addition, the truce in the Donbass enables companies to more confidently make investment.

As has declared to Agency Bloomberg chief economist of investment company Dragon Capital Olena Bilan, “consumer confidence is gradually increasing in connection with low inflation, growth in nominal wages and General macroeconomic stability.” The expert suggested that the recent rise in steel prices (one of the largest exporters of which is Ukraine) can lead to an increase in salaries and capital investment.

According to the State statistics service of Ukraine, retail sales in the first quarter of 2016 increased by 1,6% (during the same period a year earlier, they fell by 23.9%). Industrial production increased by 3.7% (previous year this figure will be reduced by 20.5%).

At the same time, the Agency notes that a number of difficulties for the economy of Ukraine remains. In particular, the country to receive financial assistance from the IMF in the amount of $17.5 billion is needed to accelerate the process of reform, whereas political instability can cause new elections even though the Cabinet has been replaced recently. In early may, the first assessment of the work of the new government under the chairmanship of Volodymyr Groysman (in April, he was succeeded by Arseniy Yatsenyuk) gave the Deputy head of IMF European Department Mahmood Pradhan. “We believe that signals, talking about the readiness of the new government to implement reforms, as well as the desire of the new Cabinet to follow the conditions of the IMF program, is extremely encouraging”, said Pradhan.

Official statistics on Ukraine’s GDP in the first quarter to be released may 16. According to forecasts of the Ministry of economy of Ukraine, GDP growth in the first quarter will be 2%, according to the International monetary Fund, Ukraine’s economy will grow by 1.5%.