New economic outlook Ukraine: Higher growth to be expected
The Ukrainian economy achieved 2.2% growth in 2017, in spite of the trade suspension with the non-controlled area in the East, which dampened growth
by around 0.9%. The growth is expected to further increase to 3.2 percent in 2018, according to new economic outlook by the German Advisory Group.
The macroeconomic indicators performed well. In particular the fiscal consolidation is starting to show results. The public debt-to-GDP ratio decreased for the first time in several years from 81% of Gross Domestic Product (GDP) in 2016 to 73% in 2017. The decline is expected to continue in 2018. Inflation was over the target (8% +/- 2%) and went up from 13.9% in 2016 to 14.5% in 2017.
To continue the positive trend, the German Advisory group note that it is important that the IMF programme is put back on track. You can read the whole newsletter here.
- February 26, 2018