Restoration pace of Ukrainian economy insufficient - IMF rep

Restoration pace of Ukrainian economy insufficient - IMF repThe restoration pace of the Ukrainian economy is predictable and insufficient, IMF Resident Representative Jerome Vacher has said.

The economy has achieved macroeconomic stabilisation, the IMF sees a gradual improvement in the economy – an increase of 1.5%, as the IMF predicts for 2016, he said. But it’s a moderate recovery and the IMF would like to see more sustainable one, he said at a press conference in Kyiv on Tuesday.

He said that among the hindering factors are the volatility of resources prices affecting exports, the problems in trade relations with Russia and the weakness of the financial sector, as it is not ready to trigger the economy revitalization.

The IMF sees the no-crediting-supported rehabilitation of the banking system: there is the required growth, but it is insufficient to support the recovery, he said.

Vacher said that the problem of combating corruption is still important.

The main obstacle for investment to Ukraine is bad business climate and it is first linked to corruption, he said. The IMF will support the Ukrainian program of reforms aimed at providing for stable growth of the economy, not cyclic one, Vacher said. The precise steps are important and there are spheres where the process should be accelerated, in particular, fight against corruption, he said.

As reported, the IMF anticipates that Ukraine's economy will grow by 1.5% in 2016 and by 2.5% in 2017. Inflation in 2016 is assessed at 13% and in 2017 – at 8.5%.

The National Bank of Ukraine (NBU) projects GDP growth by 1.1% this year.
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