Credit Agricole Ukraine presented the macroeconomic review which offers a number of reasons for guarded optimism, with Ukraine’s key economic indicators pointing towards a continued recovery following the lows of 2014-15, reports Business Ukraine.
However, significant challenges remain as the country seeks to attract much-needed international investment while maintaining strategically crucial cooperation with international financial institutions and taking into account the upcoming elections. Credit Agricole CEO in Ukraine Jean-Paul Piotrowski shared his perspective on what to expect in 2018 regarding finansial situation in our country.
"The Ukrainian economy is currently recovering on the back of a range of fundamental factors such as GDP growth and rising consumer demand. According to the recent NBU forecast, GDP growth is set to reach 2.2% this year, with further acceleration to 3.2% expected in 2018, climbing to above 4% in 2019. The country has managed to maintain this recovery trajectory despite a number of economic shocks over the past years including the trade blockage of the Donbas conflict zone. This recovery process comes in tandem with tight cooperation between Ukraine and international financial organizations.
The Ukrainian government continues to follow the path of reforms prescribed by the IMF, although this process is not always as rapid as might be anticipated. In any case, the government is trying to create a more favorable investment climate in order to attract investments from abroad. I see the recent USD 3 billion Eurobond issue and upgrade of the country’s sovereign rating by Moody’s as supporting our view", said Piotrowski.
Spealing about the key challenges for banking industry in 2018, he added that An important part of the challenge would be a step-by-step re-privatization of state banks to decrease the share of state banks progressively. Western banks now make up 19% of the market, with the share of Russian and private banks visibly decreasing. But also we should not expect to see any specific or direct impact on the banking system in Ukraine as long as the domestic banking sector remains isolated from global markets by regulatory measures. Banks in Ukraine are mostly limited to servicing the foreign trade activity of their customers, informed Jean-Paul Piotrowski.