![]() This year represents a peak in repayments, and in 2020, nearly a third of budget spending will go toward debt repayment. For now, the government has been able to shore up the hryvnia, which at least protects Ukrainians from price hikes on imported goods.Ī major problem remains the country’s large foreign debt. If there should also be a slump in grain prices-another key Ukrainian export-it will have a negative impact on both GDP and on the national currency. Yet the Ukrainian economy is still too dependent on exports and global prices for raw materials to achieve the long-term, stable growth rates that Zelensky’s team has promised.īecause of the trade war between the United States and China, the metals and iron ore markets are seeing a downturn, and these are Ukrainian industry’s main exports. In recent years, Ukraine’s economy has certainly grown: in 2018, real growth in GDP accelerated from 2.5 percent to 3.3 percent, and in the second quarter of 2019, it reached 4.6 percent year on year. His optimism is not currently borne out by practice: the 2020 budget envisages a more modest 3.3 percent, and the International Monetary Fund (IMF) forecast is about the same. Upon assuming office, Prime Minister Oleksiy Honcharuk promised economic growth of 5 to 8 percent a year. Following the political blitzkrieg in Ukraine that gave President Volodymyr Zelensky’s team a single-party majority in parliament, the new authorities have set about implementing their social and economic pledges.
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