Ukraine`s central bank hopes for $1 bln in investment in 2017

Deputy Governor of the National Bank of Ukraine Dmytro Solohub projects an inflow of foreign direct investment in Ukraine in 2017 will total $1 billion, which is the same level as in 2016.

”As for foreign direct investment, our forecast for an inflow of investment this year is the same as it was last year, i.e. $1 billion,” he told reporters.

There are no grounds after the past two months to review the forecast, but the flow of investment next year is expected to speed should structural reform accelerate along with the launch of privatization, he said.

”Even $2.2 billion, which we project for the coming year, is not that big – that`s less than 2% of GDP, whereas countries in our region attracted 6-8% of GDP per year amid active growth,” Solohub added.

The NBU does not expect significant injection of Russian investment, which in 2016 was the largest investor of Ukraine in connection with additional capitalization of its Ukrainian-based subsidiaries, which are about to withdraw from the Ukrainian market.

Earlier, the State Statistics Service of Ukraine reported that foreign investors injected $4.4 billion in direct investment in Ukraine`s economy in 2016, which was 17.1% up on 2015, when Ukraine saw $3.764 billion.

An inflow of foreign investment in Ukraine`s economy was estimated at $1.4 billion, including $1.1 billion in cash. The lion`s share of the inflow is capital converted from loans provided by parent structures.

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