The growth of Ukraine’s economy will accelerate in 2017. This was reported in the inflation report National Bank of Ukraine (NBU).
So, the national Bank expects this year will improve the terms of trade, together with the good harvest will resume positive growth in exports of goods from Ukraine. In turn, the increase in export earnings will allow companies to continue to increase investment.
“The increase in consumer demand as a result of increasing the minimum wage will stimulate economic activity,” added the NBU.
The national Bank at the same time warns about the problems.
In particular, because yet smaller growth rates and low import substitution domestic demand growth in Ukraine is largely satisfied by imported products.
“As a result of additional inflationary pressure by raising the minimum wage is expected quite restrained monetary easing, real interest rates will remain relatively high to support the attractiveness of savings in the national currency”, – also refer to the NBU.
As a result, the GDP growth will accelerate only slightly to 2.8% and 3% in 2017 and 2018, respectively, reports the national Bank.
“A key assumption of this forecast is the further cooperation with the IMF, which remains an important source of replenishment of international reserves of the country, facilitates access to financing from other international organizations, and is also an indicator of progress in structural reforms, and, consequently, investment attractiveness of the country”, – emphasized in the NBU.