2014 was a terrible year for Ukraine’s economy. GDP shrank by nearly a tenth. The currency, the hryvnia, fell by more than 50%. As the cost of imports rose, inflation jumped, from 1% a year ago to 25%. In a desperate attempt to prop up the currency, the central bank has been throwing cash at the markets: Ukraine’s foreign-exchange reserves have fallen from more than $16 billion in the middle of 2014 to less than $7 billion. Debt repayments of at least $10 billion, gas-import bills and a lifeless banking sector mean that Ukraine will probably need $20 billion in external support to survive 2015. Read more >>>
Economist
Economist
