Finance ministry sees ‘light at the end of the tunnel’ for Ukrainian economy

15:22, 28 October 2014
Politics
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Ukraine’s macroeconomic indicators may be revised upwards, Finance Minister Oleksandr Shlapak said at an international investment conference entitled SP Advisors “A Fresh look at Ukraine” in Kyiv on Tuesday. 

Ukraine's finance minister sees reasons for optimism about the economy / Photo from hron.com.ua

"The macroeconomic indicators [by the end of the year] will be revised,” Shlapak said.

“Let's wait for the end of [October]. The September results proved to be significantly better than expected, [and] I think we can talk about better results. The current situation does not require any urgent revisions. We will make decisions at the end of October."

Shlapak also said that the new macroeconomic indicators would be agreed with the International Monetary Fund.

"An IMF delegation will visit Ukraine once the new government starts carrying out its duties. Currently we talking about discussing the new macroeconomic situation."

Earlier, Shlapak said that in 2014 the Ukrainian economy might shrink by 8-9% due to destruction of industry in the Donbas by pro-Russian insurgents. The prediction was broadly in line with the worsening economic figures forecast earlier by experts.

According to the National Bank of Ukraine estimates, the country's GDP will fall by 8.3% year-on-year. In October the IMF left unchanged its July forecast for the decline of Ukraine’s real GDP in 2014 by 6.5%. According to the State Statistics Service, Ukraine's gross domestic product (GDP) in the second quarter of 2014 shrank by 4.7 percent compared with the same period in 2013.

At the same time, based on data from the State Statistics Service, the fall in industrial production in Ukraine in September 2014 compared with September 2013 slowed to 16.6% from the 21.4% recorded for the previous month. In September 2014, the food, beverages and tobacco industries saw production increase by 13%, and the output of pharmaceutical products went up by 8.4%, compared to September 2013.

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