Reuters Poll: IMF Money to Keep Ukraine Stable Despite Elections

Analysts expect that Ukraine’s gross domestic product will grow 2.9 percent this year

uatv
12.01.2019

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Loans from the International Monetary Fund (IMF) will help Ukraine maintain growth and price stability, although overall economic performance will weaken due to expected political upheaval in this year’s elections, according to a Reuters monthly poll.

According to the median forecast of analysts polled by Reuters, Ukraine’s gross domestic product will grow 2.9 percent this year compared with 3.2 percent expected for 2018 and 2.5 percent in 2017.

They see inflation slowing to 8.5 percent in 2019 from 10.2 percent expected at the end of 2018 and 13.7 percent in 2017.

On Dec. 18, 2018, the IMF Executive Board approved a new Stand-By-Arrangement (SBA) for Ukraine and disbursed $1.4 billion.

The SBA is worth a total of of $3.9 billion. It replaces the older arrangement under the Extended Fund Facility.

The second and the third tranches worth $1.3 billion each are planned to be disbursed after the completion of reviews scheduled for May 15 and Nov. 15, 2019, respectively.

If the IMF program stays on track, Ukraine will get more assistance from the European Union and the World Bank this year.

Political and economic turmoil in 2014-2015 caused the hryvnia to drop to 24 per $1 from eight. Since then, it has weakened further, and it is around 28 hrvynias for every dollar currently.

Source Reuters
date 12.01.2019
categories Economics
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