The WB has estimated the backlog of economy of Ukraine from Poland

ВБ оценил отставание экономики Украины от Польши

The Ukrainian economy is sorely lagging behind neighboring

Given the current dynamics of the economy of Ukraine will overtake the neighboring country at least a century, the Bank said.

At the current rate of GDP growth the Ukrainian economy will need about a hundred years to catch up with Poland. said world Bank Director for Ukraine, Belarus and Moldova satu Kähkönen in an interview with the Economic truth.

According to Kähkönen, there is a serious risk of the slowdown in reforms because of the double elections in 2019. Moreover, she believes that some key reforms can not only stop, but to turn in the opposite direction. “This reversal none of us would like to see,” said satu Kähkönen.

She believes that Ukraine can not afford to go the path of reform. And there are two reasons.

First, the country has not yet recovered from the crisis of 2014-2015. Income per capita is still lower than the corresponding figures of the period.

“But in order for GDP growth, we need reforms in the economy. This is the main reason why the country needs to continue reforms. Over the past four years has done a lot and now is not the time to stop”, – said a top Manager of the world Bank.

In quality the second reason it is called the international economic environment, which is now unstable. Therefore, Ukraine cannot hope that the demand of the external market will pull the economy.

 

“You should take steps that will attract international and domestic investments,” Kähkönen said.

She also criticized the initiative of the President of Petro Poroshenko about replacing the income tax with a tax on the capital, calling it populism.

Earlier, the world Bank lowered its growth forecast for Ukraine’s GDP in 2018 and to 3.3% from 3.5%.

 

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