Ukrainian PM outlines challenges for economy
IANS | 05 Apr, 2014
Shortage of investment, high inflation and complication of economic
cooperation with Russia are the major challenges for Ukraine’s economy
this year, Prime Minister Arseny Yatsenyuk said in Kyiv on Friday.
“The
economic forecasts for this year are disappointing given the
double-digit inflation expectations and projected GDP fall of 3
percent,” Xinhua quoted Yatsenyuk as saying at a meeting with
businessmen.
The strains in economic relations with Russia,
Ukraine’s largest trading partner, will negatively affect the country’s
industrial production, Yatsenyuk said.
He said that Ukrainian
enterprises may suffer economic damage due to the loss of Russian sales
market and increased prices for natural gas.
Unstable political
and security situations also forced foreign investors to withdraw from
the Ukrainian market, Yatsenyuk said, adding that the country’s economy
is appearing very vulnerable to outflows of funds.
Political, economic and military elements led to a significant fall of local currency hryvnya, Yatsenyuk said.
In early April, hryvnya slumped to its lowest level against the US dollar since Ukraine’s independence in 1991.
To
overcome the challenges and ensure fresh injection of funds into the
economy, the government will step up efforts to help businesses and
ensure collaboration with international lending organisations, Yatsenyuk
promised.