EBRD worsens Ukraine’s GDP growth forecast to 2.5% this year

Source : 112 Ukraine

Previously it predicted growth of 3% in 2019
15:46, 9 May 2019
Open source
The European Bank for Reconstruction and Development (EBRD) downgraded the forecast for Ukraine’s GDP growth in 2019 from 3% to 2.5%. This is stated in the bank's documents regarding May 2019.

It is expected that in 2020 the growth of gross domestic product will be 3%.

The slowdown in economic growth is associated with domestic political uncertainty caused by double elections. Because of this, a temporary growth slowdown to 2.5% is expected in 2019.

After the elections, implementation of reforms in combination with easing monetary policy will help to achieve stable growth. In this case, the growth of the economy will reach 3%.
112 Agency

However, in the years 2019-2020 large payments on external debt are expected. In this regard, cooperation with official creditors remains vital for the continuation of economic recovery.
Earlier European Union, European Bank of Reconstruction and Development, World Bank and Energy Community strongly supported the necessity of transit from the existing “green tariff”, acting in Ukrainian legislation, to the competitive system based on the “green” auctions. A joint letter of the representatives of these organizations states that. The letter is addressed to Oleksandr Dombrovsky, the chairman of the relevant committee, Andriy Paruby, the Chairman of the Verkhovna Rada, and the Prime Minister Volodymyr Groysman. The signatories comment on the preparation of the bill No. 8449-d on amendments to the laws of Ukraine on providing competitive circumstances for generation of electricity from alternative sources.

“European Bank of Reconstruction and Development (EBRD) and International Financial Corporation (IFC) believe that the current system is no longer suitable for the long-run development of the sector, though it was useful for its launch. As the result, EBRD will not be able to finance new projects in Ukraine, depending on the “green tariff”, with exception of those already in the stage of development, unless the law will be adopted to guarantee the long term of the sector’s economic stability to facilitate the necessary comfort for investors and sponsors,” reads the message.

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