The world Bank has called the conditions for faster growth of economy of Ukraine
If key reforms are to move forward, it is expected that economic growth will reach 3.4% in 2020 and 3.8% in 2021.
Ukraine needs rapid progress in implementing key structural reforms to accelerate economic growth. This was said by satu Kähkönen, world Bank Director for Belarus, Moldova and Ukraine at a press conference in Kyiv, RBC-Ukraine online reports.
Kähkönen said that this means the creation of a market of agricultural land, the separation of natural monopolies in the energy sector, strengthening governance in state-owned banks, the progress in the fight against corruption and ensuring financial stability.
According to the forecast of the world Bank, if the key reforms are to move forward, it is expected that economic growth will reach 3.4% in 2020 and 3.8% in 2021. Otherwise, in case of absence of reforms, economic growth could slow to below 2%, as investor confidence worsens, and macroeconomic vulnerability increases.
The world Bank noted that macroeconomic risks for Ukraine associated with significant payments on the public debt, which have to 2019-2021 years, and the pressure from current expenditures. This will require the mobilization of necessary financing from international financial institutions and capital markets and further strengthen the public Finance system and achieve the target budget deficit.
“To improve the quality of public services for the population of Ukraine is important the implementation of the initiated reforms in health, education, pension provision, public administration and social assistance. It will also be important to introduce a more equitable and supportive of economic growth tax system,” – said in the may economic Outlook from the world Bank to Ukraine.
Earlier it was reported that the world Bank has lowered its forecast for Ukraine’s GDP
Recall, Ukraine in 2019 was taken from the world Bank to borrow €500 million on economic growth.
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The world Bank has called major reforms in Ukraine