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Commissioner for European Neighborhood Policy and Enlargement Negotiations Johannes Hahn says Ukraine could achieve greater economic growth, between 6% and 7% increase in GDP, if the reforms continue, according to an UNIAN correspondent.
"The IMF predicts 2.5% real growth in GDP this year, inflation is slowing down, and there was a 100% increase in foreign direct investment in 2016. I would like to emphasize that much higher economic growth can be achieved. The international financial institutions see the growing potential for Ukraine, of 6% to 7% of GDP [growth] per year. This is unthinkable growth forecasts for the EU member states," Hahn said at the conference titled "Ukraine's Reforms and the Role of the EU: How to Unleash Ukraine's Economic Potential" in Brussels on February 6.
The commissioner also said that the EU supports Ukraine in the reform process with both considerable financial assistance and expertise. "From 2014 to 2020, the EU and the European financial institutions will have pledged EUR 12 billion in loans and guarantees for reforms. At least EUR 7 billion has already been granted," Hahn noted.
Read alsoUkraine boosts agriexportsIn his opinion, Ukraine has many key assets to ensure its potential growth. In particular, he mentioned the significant potential of the agricultural sector, highly skilled labor at low costs. "However, to realize this huge economic potential, Ukraine is to make its reforms irreversible," he said.
At the same time, he voiced key conditions that are necessary to promote economic growth and investment. Firstly, Ukraine should get rid of corruption; secondly, it should respect ownership rights; thirdly, privatization should be transparent. "State- own enterprises need to be privatized in a transparent manner. They should be sold to the highest bidder or closed if there is no economic potential. It will also provide a huge economic boost to the country," Hahn said.
The commissioner stated that Ukraine "has come a very long way, but there is still a long way to go. But you're on the right track and you cannot afford Ukraine's reform process to fail. The stakes are too high. Our choice, as the European Union is to export stability and economic growth or, in other words, to import instability. The choice is clear. Ukraine's economic transformation will play a key – if not a decisive – role in this process," he stressed.