Investment attractiveness of Ukraine rises after the Government change
Ukraine's investment attractiveness index, calculated by the European Business Association (EBA), grew in the first quarter of this year up to 2.72 points from 1.81, which was the highest level since 2011.
This was reported by Anna Derevyanko, executive director of the European Business Association.
At the moment, business perceives the situation in the country quite differently, says A. Derevianko. Businessmen waiting for improvements in the economy, because now there is a chance to upturn the situation in the country as many countries offer Ukraine a large amount of financial support and, the most important now - not to miss the chance offered.
Index of the investment attractiveness by the EBA is calculated as the arithmetic average of five indicators: the investment climate in the country and each sector separately, the dynamics of the investment climate in the past three months, predicted dynamics for three months, the profitability of the new market players. Currently four of these indicators are at the level below three points on a scale of five and still business expectations are on a high level - 3.6 points.
Tomas Fiala, President of the EBA, explained that the business observes the situation as quite positive. Yatseniuk stabilized the macroeconomic situation in the country and contributed to the signing of the political part of the Association Agreement and the resumption of the IMF arrangements that adds to business predictability and certainty.
According to him, the investment attractiveness index is directly related to the general economic situation in the country, consequently after a while the growth of Ukrainian GDP is expected.
Fiala considers that until the third quarter GDP will continue to fall, and in the fourth quarter of 2014 to stabilize or even start to grow.
He also emphasizes that it will apply only to the situation in the country, because the overall picture is slightly distorted by Russia. Consequently such forecast may be optimistic to some extent.
EBA conducted its research in March-April 2014 as part of a survey where managers of 106 member-companies took part.
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