The economy of Ukraine expects growth – Bloomberg

Экономику Украины ожидает рост - Bloomberg

Capital investment, budgetary costs and consumption of the population are pushing Ukrainian economy.

Ukraine’s economy for the first time in two years that can show growth – GDP for the first quarter of 2016 will increase by one percent, writes Bloomberg.

The Ukrainian economy is growing at vosstanovlenii growth capital investments, budget costs, and on consumption, the newspaper notes.

“In recent years, the economy of Ukraine stabiliziruemost. The hryvnia, which in 2015 has depreciated by a third, stabilized, inflation fell below 10 percent. In addition, the truce in the Donbass enables companies to more confidently make investments,” says Bloomberg.

Chief economist of Ukrainian traffic investkompanii Dragon Capital Elena Belan explains that consumer confidence is gradually increasing in connection with low inflation, growth in nominal wages and General macroeconomic stability.

“The recent rise in steel prices can lead to higher wages and capital investment,”- suggested the expert.

Data of the state service of statistics of Ukraine indicate that retail sales in the first quarter of 2016 increased by 1.6 percent (the same for 2015 were down by 23.9 percent). Industrial production increased by 3.7 percent (previous year this figure will be reduced by 20.5 percent).

But Bloomberg stressed that there are a number of difficulties for the economy of Ukraine.

For example, to get from the IMF and 17.5 billion dollars Ukraine needs to accelerate the process of reform, whereas political instability can cause new elections, even given the fact that the government had recently updated.

6 may at the International monetary Fund said that Ukraine will soon enter into a period of record economic growth, which will be supported by the reduction of economic imbalances and improvement of the geopolitical situation.

The world Bank expects the growth of the Ukrainian economy in 2016 will remain at one percent.

And the Ukrainian Finance Ministry expects GDP to three per cent with an inflation rate of 8.1 percent.

External trade of Ukraine fell to a third

According to the materials:

RBC
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