Three years after the Revolution of Dignity, the Ukrainian economy has stabilized and is ready for growth. Will the growth be fast or slow? Dangers lie ahead, but opportunities prevail.
Success is easily taken for granted, so it is worth recalling what Ukraine has accomplished in the past three years. An unsustainable budget deficit of 10 percent of GDP has now been brought down to about 3 percent of GDP, mainly through cuts in public expenditures. The public debt has leveled out at 80 percent of GDP, while the IMF had feared it would spiral out of control. The government has sensibly reduced the exorbitant payroll tax from 45 percent to 22 percent.