The Cabinet of Ministers of Ukraine reports on economy trends in 2015

This article deals with the report of the #Cabinet of Ministers of Ukraine on the #economy of Ukraine in 2015.

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The Cabinet of Ministers of Ukraine announced its report, which will be introduced in the Verkhovna Rada in the middle of February.

According to the report, in 2015 Ukraine’s GDP declined by 10.4% compared to 2014. The high proportion of the GDP decline is connected to the armed conflict in Donetsk and Luhansk regions. It was calculated that this conflict had contributed more than 40% to the negative GDP dynamics. It is emphasized that without taking into consideration the impact in Donetsk and Luhansk regions, the decline in GDP in 2015 could have amounted to 5.9%, including in industry – 5.2% (actual decline is 13.4%), agriculture –  2.9% (actual decline is 4.8%), construction – 9.1% (actual decline is 14.9%).

While in the first quarter of 2015 the GDP of Ukraine declined by 17.2%, there was slight growth of 0.2% in the fourth quarter of 2015. The Government of Ukraine expects 1-2% growth of GDP in 2016. However, this will depend on various factors, which may have a negative impact on the economic situation in the country, including decrease in prices for commodities exported by Ukrainian producers, restriction on transit and import of Ukrainian goods to the Russian Federation, etc.

In addition, in 2015 the inflation rate was the highest in Ukraine for the last 20 years and amounted to 43.3%.

The report of the Cabinet of Ministers also indicates that it was able to stabilize the situation in the economy of Ukraine in 2015 through receipt of financial aid from the IMF, completion of negotiations on the restructuring of foreign debt, intensification of economic reforms, deepening of cooperation with the EU, etc.

We note that in 2014 the GDP of Ukraine declined by 6.8% compared to 2013.

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