Ukraine : economic situation and key challenges Igor Burakovsky

Institute for Economic Research and Policy Consultingwww.ier.com.ua

Ukraine: economic situation and key challenges

Igor Burakovsky

Head of the Board, Institute fro Economic Research and Policy Consulting

BerlinBerlin, 2, 255 March March 20120144

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Institute for Economic Research and Policy Consultingwww.ier.com.ua

Economy todayEconomy today2013: Zero economic growth2013: Industrial output declined

2013: Agriculture growth by 13,7%2013: Export (goods and services) declined by 7,6%, import

by 7,4%2013: Underexecution of budget revenues

Industry As compared with 2012

Industry (total) 95,3%

Extracting industry 100,4%

Processing industry 92,3%

Electricity, gas, heating 98,7%

3Economy today: major Economy today: major

characteristicscharacteristics

1. Recession in 2014. The question now: scale, time and consequences

2. High level of uncertainty. Lots of questions need to be apprehended. Crimea economic puzzle.

3. High level of volatility. “Small” factors may result in large fluctuations.

4. Military threat as economic challenge.5. High expectations in the society.6. Lack of political consolidation on economic issues.7. Presidential elections as economic factor.

Institute for Economic Research and Policy Consultingwww.ier.com.ua

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Economy today: challenges Economy today: challenges

1. Institutional challenge (secure functioning of economy, stabilization, reforms).

2. Fiscal consolidation.3. Debt servicing.4. Resuming cooperation with IMF.5. Cooperation with Russia under current circumstances.6. Political tensions.7. Banking sector support. 8. Proper management of international financial support

package.9. Decentralization (solving puzzle of combining

redistribution of powers with shortage of funds).10. Social standards as economic and political challenge

(social protection in the times of recession and political turmoil).

Institute for Economic Research and Policy Consultingwww.ier.com.ua

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Institute for Economic Research and Policy Consultingwww.ier.com.ua

Дякую за увагу!Дякую за увагу!Thank youThank you!!

Contact information:

Institute for Economic Research and Policy Consulting

www.ier.com.uainstitute@ier.kiev.ua

8/5-А Reytarska str., Kyiv 01034, UkrainePhone +38-044-278-6360

Fax +38-044-278-6336