Inflation, unemployment, and deep crisis of Ukrainian economy

Author : Olexandr Honcharov

Source : 112 Ukraine

According to the results of 2017, Ukraine will have the highest levels of inflation and unemployment in the world
09:55, 7 November 2017

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Last week, President Poroshenko and Prime Minister Groysman were once again forced to go abroad with a begging bowl. I mean the president's Arab tour of Saudi Arabia and the UAE, as well as the visit of the prime minister to Canada. Now, without the loans of the International Monetary Fund, we have real hard-to-solve economic problems. All politicians and entrepreneurs are very carefully watching the rate of American dollar, because Ukraine is on the verge after which a new and more powerful turning point in devaluation and inflation will come. We are keeping a "true" course, so Fitch international rating agency has maintained a long-term sovereign rating for the issuer of the Ukrainian state in foreign and state currency at the B-level with a stable outlook.

Related: For the first time Ukraine is experiencing such a devastating crisis

"Ukrainian ratings reflect weak foreign liquidity, high government debt and structural weaknesses against the backdrop of a weak financial sector, institutional constraints, geopolitical and political risks," Fitch said in a statement. You cannot argue with these statements of the leading analysts of the international rating agency. Yes, there is a personal position of Poroshenko and Groysman, for which they can be criticized or praised, but at the same time, Ukrainian economy is objectively in a difficult situation.

According to the results of 2017, we will have the highest levels of inflation and unemployment in the world. Only Venezuela and some other African country are ahead of us. And one can safely talk about the de-industrialization of the country, and gloomy macroeconomic indicators no longer seem embarrassing to anyone. As well as no one can stop selling of the remaining family silver, that is, privatization for the untapped Ukrainian black soil. At the same time, Cabinet of Volodymyr Groysman use Ukrainians as the experimental rabbits. It is just testing on us the dangers and horrors of the stagflation scenario (stagnation plus inflation).

Related: Corruption costs 2% of economic growth for Ukraine, - IMF

And one thing is to listen to the bright reports of the ministers about the next "achievements" from the TV shows, and the other is to see crisis just out of the windows of your houses. This crisis is developing much faster than we expect, respectively, the unpredictable uncertainties increase; at least two factors are important here. The first is the price for our export products, the second is the price of international financial capital that we could attract.

Related: GDP growth of less than 2% is degradation of Ukraine's economy

No one knows what will happen to the economy at least in six months. But Groysman has already understood: the excess state property is a huge problem for the authorities, and therefore, on the background of armed confrontation in the east of the country, the idea of a new wave of large-scale privatization, including the land of agricultural research, ceases to appear some absurdity. Ministers and people's deputies can see a different way out of this situation? If you see, why are you silent? Unfortunately, recently everyone in the Cabinet complains about the lack of money, and nobody complains about the lack of intelligence.

Related: 37% of Ukrainian economy in shadow, - Ministry of Economic Development

The worst thing is that many people's deputies and ministers do not care what is happening in society and in the economy of the country. All the rest of Ukrainians are just strangers. For example, over the past 20 years, more than two thirds of the Ukrainian population have no savings at all. They have spent 20 years in a crisis! Clumsy attempts of oligarchs to apply the liberal model in the Ukrainian economy quickly led to its degradation. Therefore, the oligarchic government has completely destroyed the demand for knowledge and competent leaders.

Related: Shattering plan: Blockade of Poroshenko's confectionery business

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