In its new Ukraine Macroeconomic Update the World Bank says that despite lower GDP growth in 2015, the country’s general fiscal and budget performance has so far been better than anticipated. At the same time, the Bank projects real GDP to fall by 12 percent this year, down from an earlier projected 7.5 percent decline.
The macroeconomic policies adopted by the authorities proved to be effective in mitigating a much more painful impact on the country’s economy, but the on-going conflict in the Donbass has made stabilization more difficult. Along with current unfavorable global economic environment, it has led to a much sharper contraction in the economy. To improve the economy, Ukrainian government have to increase efforts at fighting corruption and improving governance, continue reforms to reduce NAFTOGAZ imbalances and strengthen the energy sector’s capacity, and boost confidence in the banking system. Read more at http://www.worldbank.org
The macroeconomic policies adopted by the authorities proved to be effective in mitigating a much more painful impact on the country’s economy, but the on-going conflict in the Donbass has made stabilization more difficult. Along with current unfavorable global economic environment, it has led to a much sharper contraction in the economy. To improve the economy, Ukrainian government have to increase efforts at fighting corruption and improving governance, continue reforms to reduce NAFTOGAZ imbalances and strengthen the energy sector’s capacity, and boost confidence in the banking system. Read more at http://www.worldbank.org
