After an 18-month period of sharply declining business activity, it seems we can state with confidence that the crisis is over, and that Ukraine’s economy is looking at brighter days ahead.
Companies all across the economic spectrum, from agriculture to steelmaking to transportation, are starting to report improved sales. Businesses are once again starting to speak about long-term modernization and capital investment. Yields on Ukrainian government bonds are down by a full three percent. The government recently predicted that gross domestic product will grow by 3.7 percent in 2010.
So as the logic of investor euphoria goes, in light of this tangible basis for optimism, the recent stunning rise in the value of Ukrainian equities is perfectly natural, right?