Government forecasts economic growth of 3-4% in Ukraine for next years

Wednesday, June 29, 2016 - 14:12 (EEST) Section: Latest news

The Cabinet of Ministers of Ukraine forecasts economic growth in Ukraine at 3% in 2017 and 4% in the next two years, with inflation targets of 8.1% in 2017, 5.5% in 2018 and 5.2% in 2019.
This is stated in the draft of the key budget figures for 2017 (the so-called budget resolution) that has been approved by the Ukrainian government and published on the Finance Ministry`s website.
It is reported that the draft was elaborated by the Ministry of Finance according to the working program of the Cabinet of Ministers, the coalition agreement, the targets of the priority action plan of the government for 2016 and the sustainable development strategy ”Ukraine-2020”. It is also based on the terms of cooperation with the International Monetary Fund and other international organizations. Also, the authors of the draft took into account all suggestions of the Presidential Administration, ministries as well as national employers` associations and trade-union associations, as noted in the statement.
The Budget Resolution for 2017 contains a forecast on the key macro-parameters of the economic and social development of Ukraine for 2018 and 2019 which makes it possible to ensure the balanced and durable budgetary system in the mid-term run, the statement reads.
The government`s targets as to the economic development envisage the nominal GDP growth of UAH 2.58 trillion in 2017, up to UAH 2.86 trillion in 2018, and up to UAH 3.14 trillion in 2019. The state budget deficit in 2017 is capped at 3% of the country`s GDP, to be reduced to 2.5% in 2018 and 2.3% in 2019. The unemployment rate is also projected to decline from 8.6% in 2017 to 8% in 2019. Maximum public debt is projected at 66.8% of GDP in 2017, and 61.8% of GDP in 2019.
The minimum salary is set not lower than the living wage for employable citizens, and the maximum government-backed debt warrants at not more than 5% of the state budget revenues. Additionally, at least UAH 1 billion is planned to be allocated for development and implementation of public investment projects in priority areas.
What is more, the Ukrainian government forecasts that social standards in Ukraine will grow each consecutive year starting from 2017, and their growth will exceed the rise in inflation.
As UNIAN reported earlier, the Cabinet of Ministers of Ukraine approved the draft budget resolution for 2017 on June 24. During the debate over the document, the ministers also envisaged the availability of financial resources for four special-purpose funds, namely, for the energy efficiency fund, the road management fund, the small-sized farmers support fund, as well as the regional development fund.
Earlier, the government stated that the budgetary process in Ukraine would be changed, and the Finance Ministry as the key agency responsible for budget development will draft the national budget for a period of three years.
The Budget Code of Ukraine envisages that the draft budget resolution is submitted for consideration of the parliament and used as the basis while developing the 2017 budget.