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The government has done enough in the right direction to minimize the fall and lay the foundation for long-term growth.
The 4% reduction in the gross domestic product in Ukraine in 2020 was one of the world's lowest rates, thanks to a number of government efforts made amid crisis, says economy minister Ihor Petrashko.
"In 2020, Ukraine's GDP contracted by 4%. This is one of the world's lowest rates. I believe we have done enough right things to minimize the fall and lay the foundation for long-term growth," the ministry's press service quoted Petrashko as saying.
According to the official, the government addressed two main tasks: firstly, to prevent layoffs and secondly, to ensure access to financial resources, especially for micro and small businesses.
"The government introduced simple and effective assistance programs for temporary unemployed. In general, somewhere up to 500,000 people, through their employers, utilized the mechanism and escaped dismissal. Businesses had time to adapt and switch to remote work, if necessary," Petrashko said.
With regard to access to funds, the minister added, the "5-7-9%" lending program was activated and enhanced. Entrepreneurs received a relatively cheap credit resource, and banks – the opportunity to continue credit relations with businesses.
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Background
The World Bank expects a moderate recovery of the Ukrainian economy in 2021 with a GDP growth of 3.8%.