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 IMF representative predicts economic recovery in Ukraine by end of year: "I see you can do this"

мвф IMF

IMF representative is confident that Ukrainian economic growth should resume next year due to investment.

IMF Permanent Representative in Ukraine Jerome Vacher said in an interview on Thursday, Censor.NET reports citing UNIAN.

"The situation is complicated. By the end of the year, the country should expect recession. According to our forecasts, the decline in GDP will be 5.5%, inflation at about 27%. Of course, it will be difficult," Vacher said.

"At the same time, there is a correction of the economy, and this can't be ignored. In 2013, the current account deficit was more than 9%. In 2014 it was reduced by half. And this year, we expect a deficit of 1.5% of GDP," he said.

Read also: National Bank replenished gold and foreign currency reserves by $2.5 billion from the IMF loan

At the same time, the IMF expects that the Ukrainian economic recovery will begin by the end of 2015, and in 2016 it will resume growth at the level of about 2%.

"Investments will be the engine of this growth. The Ukrainian economy has great potential. It has great human capital, and the situation is very favorable to develop export potential. If the reforms are carried out properly, especially in a business environment, we will see rapid progress," Vacher said.

According to Vacher, Ukraine needs several years of reforms to catch up with the countries of Eastern Europe for the development.

"I see no reason why Ukraine can't do that. Of course, time and political will is necessary. But I see that you can do this," he said.

Read also: Ukrainian economy will return to level of 2014 not earlier than in 2018 according to the most optimistic scenario - Presidential Administration

 
 
 
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