Ukrainian President Petro Poroshenko expects the Ukrainian economy to start recovering in 2016.
“I expect that we will be able to show GDP growth in 2016,” he said at the 12th Annual Meeting of the Yalta European Strategy (YES) in Kyiv on Sept. 11.
Poroshenko said that Ukraine has managed to considerably cut inflation, stabilize the financial and banking systems, and has implemented budgetary discipline.
“Am I optimistic about the economic situation? I would say “yes!” he said.
Poroshenko said that Ukraine will also improve its investment climate, regardless of any obstacle, thanks to tax reform, although the country requires the support of foreign investors.
According to the government’s forecast as of August 2015, under the optimistic scenario, Ukraine’s GDP will grow by 2 percent in 2016 with inflation of 12 percent (December on December). However, the government’s macroeconomic forecast also includes a pessimistic scenario, under which GDP will fall by 0.3 percent with inflation of 14.7 percent.
The International Monetary Fund (IMF) and the Ukrainian government in the middle of this year revised its GDP decline forecast downwards – to 9 percent in 2015 with inflation of 45.8 percent. The National Bank of Ukraine (NBU) projects that GDP will fall by 9.5 percent, with inflation of 48 percent.
