World Bank forecasts slight increase in Ukraine’s GDP growth rate in 2018

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Economy

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.

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  • veth
    • Screwdriver

      Will it help Ukrainian GDP ?

      • MichaelA

        who cares?
        ukrainian gdp is growing while russian gdp shrinks

        • Screwdriver

          вже сонце зайшло за гору
          стояв теплий серпневий вечір
          пливли кавуни по дніпру
          пливли уверх проти течії
          до самої до столиці
          з херсону далекого граду
          там родить щедро землиця
          продукти ці без нітратів
          дістане киянин втомлений
          свою дольку солодкої м’якоті
          із чуства вдячності гройсману
          може даже заплакати
          не смійся шутнік фейбучний
          бо ясно всім слава богу
          шо баржа намного лучче
          чим фури шо нищать дороги

          • MichaelA

            this is an english language blog
            you dont write in english because you know we will easily destroy your arguments

  • zorbatheturk

    The RuSSia will continue to go backwards until a certain low-flying sh#tbird called Putin is blown out of the sky.

  • Ihor Dawydiak

    While Ukraine slowly but surely disentangles itself from its sordid sovok mindset of the past, there remains much room for optimism for a new, democratic and prosperous nation governed by the rule of law and order. This anticipation for better times ahead should be buoyed by Ukraine’s clear decision to cut its chains with Russia and gradually integrate into the European Family of Nations. In fact, there will almost certainly come a day when for their part the average Russian citizen will look upon their own poverty and wonder why they had not followed in the footsteps of their older and much wiser Ukrainian “cousins” but had instead toed the line as dictated by idiotic pompous chauvinists such as Putin the Pederast.