Logo

It’s the Economy, Stupid

15 July 2018

Good news on the financial front, well, on the surface anyway. The World Bank predicts that Ukraine’s GDP growth in 2018 could hit the 3.5% mark. That’s a respectable number as we look around and make comparisons to the slow but steady GDP growth figures seen in neighbouring countries to the west.
But, the announcement comes with the inevitable caveats Ukraine watchers are used to. This figure will only be reached if we see more movement in pending anti-corruption reforms and press ahead with land market reform and privitisation of state-owned assets, including some state-owned banks. So, GDP growth could be impressive if – is basically the message.
As has been noted on these pages in the past, Ukraine’s GDP per capita is a paltry 2 200 USD. Whereas the respective figure for Poland is 12 400 USD. Starting from such a low base point, if Ukraine were to press ahead with the aforementioned reforms, and fix rule of law issues to attracts more foreign investment, then Ukraine could actually see much higher and far more impressive growth numbers.
In other economic news, inflation is falling. For the first time since September 2016 this key indicator of economic health dropped into single digits.

Share on FacebookTweet about this on TwitterShare on LinkedInShare on TumblrEmail this to someone


Read More

In recent weeks, two more names have been added to the list of those vying for Ukraine’s top job. The number of candidates stands now at 24, with a couple more people still expected to put themselves forward yet. The problem with such a large playing field is that votes are going to be very […]

Ukrainians are rejoicing and singing halleluiah because of the recognition of Ukraine’s own brand of orthodoxy as a separate and independent church. The decision, made by the Constantinople Patriarchate, has angered Moscow who wanted religious ties between the two countries and churches to stay just as they were for reasons too long to go into […]

One of the best things to have happened, for Ukraine, since Donald Trump became President of the United States was the appointment of Ambassador Kurt Volker as special envoy to this region with the specific task of trying to bring peace to the Donbas. Volker has been very active and taken a principled approach to […]

The European Bank for Reconstruction and Development has just revealed their investment plans for Ukraine for the next five years. The bank is already the largest financial investor in the country, with some 14 billion USD at work across as many as 400 projects. Over the next five years, the bank has pledged to invest […]

X