Article by: Prof.Sunil Kumar Sharma

In the latest economic data released by the World Bank (WB), a marked improvement has been projected for Ukraine’s economic growth.

A WB report for June shows that, though the GDP growth rate for 2017 would remain at 2% as projected earlier, there has been a noticeable change for better for 2018 and 2019.

In its revised estimates, WB has changed the earlier stated GDP figures for Ukraine. For 2018 the growth rate would be 3.5% instead of 3.0% as predicted earlier.

According to the World Bank, for 2019, Ukraine would consolidate further its economic development and register a good 4% GDP growth, which is a full 1% higher than the 3% growth rate projected earlier.

Some of the factors that were considered by the World Bank while improving the economic projections for Ukraine in the coming years are as follows:

Continuation of the vital institutional reforms in Ukraine that boosts the investment climate, develops trust of investors and positively impacts the overall business environment of the country;

Stable political climate in the country and normal functioning of the central government;

A more active role of the private sector in Ukraine and expected improvement in its contribution to the economy of Ukraine;

A consistent increase in the government and household consumption over the last three quarters, which augurs well for the economy;

Bumper Agricultural harvest, a boom for Ukrainian farmers which is instrumental in country’s economic revival.

At the same time the World Bank observed the following challenges, which, if not overcome and resolved, could derail the expected economic growth of the country:

Culmination and completion of the necessary reforms underway, failing which Ukrainian economy would not achieve the expected growth;

Increasing inflation;

Prudent fiscal management including containment of fiscal deficit, which is vital for the healthy functioning of the economy;

Rising escalation and continued Russian aggression in the Eastern region of Ukraine can be a spoiler and flatten the economic rebound.

Dear readers! We need your help. COVID-19 has hit independent media outlets hard, but even more so in Ukraine, where most outlets are controlled by oligarchs. To make matters worse, several English-language media sources from Ukraine have closed recently. And even worse, this comes at a time of troubling government tendencies and amid a pro-Russian resurgence in Ukraine. Help keep us online and reporting on the most important of Ukrainian issues for you in these troubling times, bringing the voices of civic society to the forefront of the information war. Our articles are free for everyone to use but we depend on our readers to keep going. We are a small independent journalist team on a shoestring budget and have no political or state affiliation. If you like what you see, please Help keep us online and reporting on the most important of Ukrainian issues for you in these troubling times, bringing the voices of civic society to the forefront of the information war. Our articles are free for everyone to use but we depend on our readers to keep going. We are a small independent journalist team on a shoestring budget and have no political or state affiliation. If you like what you see, please support us with a donation

Related

Tags: economy