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.
You should be authorized to post comment
Ukraine: Portinvest to build a grain terminal in the port Yuzhny
State Food and Grain Corporation of Ukraine to increase shipment capacities of the Odessa terminal
As of August 28, Ukraine harvested over 35.5 mln tonnes of grains - Ministry of Agrarian Policy
New season for Black Sea sunflower: close to record
No reason to limit Ukrainian wheat exports – Ukrainian Grain Association
APK-Inform Agency is glad to present our new magazine Oilseeds and Oils Monthly outlook
August 28, 17:10