You're reading: Former economy minister: Ukraine to reach pre-crisis level of economic growth in 2012

Ukraine will manage to reach pre-crisis levels of economic growth next year if the current pace of economic growth is maintained, former Ukrainian Economy Minister Viktor Suslov has said.

"Ukraine will manage to reach pre-crisis levels of production only next year if the current trends [of economic growth] continue," he said at a press conference in Kyiv on Tuesday.

Suslov noted that, formally, according to statistics, the figures of GDP growth, industrial production and agriculture were positive, but the Ukrainian economy had not yet reached its pre-crisis level. He said that after a 15% drop in GDP, the high percentages of growth in recent years had been the compensation for Ukraine’s losses since 2008.

At the same time, he said that GDP was growing in the light of high inflation. In his opinion, the rise in prices for raw materials seen in the world is not negative for Ukraine, because the country exports more raw materials than it imports.

In addition, he said that high prices for raw materials would inevitably turn into a rise in prices for consumer goods.

He noted that according to the State Statistics Service, the consumer price index had grown by 5.9% over the last six months (July 2011 compared to December 2010).

Suslov said that a rise in the cost of the consumer basket required a different social policy in the country. In his opinion, it is necessary to reconsider the size of the living wage. He also said that there was a threat of default in Ukraine, but not in the near future.

"Default is possible, but not very soon, as money is given to cover the liabilities on old debts. But the path Ukraine is walking is probably not [one leading to] the fulfillment of its obligations on its debts," Suslov said.

In his opinion, in order to avoid this, it is necessary to balance goods and services and pursue a policy of regulating imports.