Political factor and agricultural market

April 10, 10:00 Source: APK-Inform Views: 526

IMF bailout may strike Ukrainian economy

Execution of the requirements of the International Monetary Fund in Ukraine may cause declining of both consumption level and investment in production, which will adversely affect the growth rates of the economy, informed the report of the World Bank for Ukraine.

According to experts of the World Bank, in 2014 the level of consumption in Ukraine may drop by 8%, while the decline of investments in production will not be significant, and transition to the floating exchange rate will assist to bring down the gap of current trading operations.

The expected small-scale growth of economy of the major trading partners will lead to reduction of the request for exports of Ukrainian commodities and services, informed the Bank.

At the same time, the current resumption of cooperation with the IMF and other international partners can increase confidence of investors to Ukraine, and reduce costs for foreign financing, which should lead to stabilization of the reserves of the National Bank of Ukraine.

The World Bank forecasted declining of the economy of Ukraine in 2014 by 3%, the inflation - at 15%. At the same time, the observed worsening in the country's economy started several years ago, long before the current political crisis.

Comments

You should be authorized to post comment