The impoverishment of Ukraine will not be stopped until the war ends
Kyiv, April 02 (PolitNavigator, Vladimir Mikhailov) – If it is not possible to find a political solution to the current conflict and restore peace, then Ukrainians will face a sharp decline in living standards, predicts the director of the Ukrainian Institute of Policy Analysis and Management Ruslan Bortnik.
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“We must understand that Ukraine is already in virtual default. This year it is not able to fulfill all its obligations on its external debt, so the question of its restructuring has arisen. If it is not carried out, we will have to admit a technical default.
The economy is rapidly shrinking. The fall in GDP by the end of the year will be at least 10%. The last “living” sectors of the economy are trying to go into the shadows and not pay taxes. Therefore, ordinary citizens, especially those who depend on the state, should not expect anything good. Prices will rise, incomes will decline. The current reduction in pensions, limiting payments to civil servants, teachers, and doctors is not the last. Increases in utility tariffs and other similar processes will continue until economic growth is restored. And it will not be restored until peace comes.
The cause of this crisis is political. Unlike the previous one, when we suffered from a worldwide recession, only Ukraine is suffering from the current one, and to a lesser extent Russia and the EU. If politicians fail to solve this crisis, the economic situation will worsen. Non-payment of wages will increase, we will return to 1994-1996, when people simply did not have money. People will have to completely forget about such familiar things as going on vacation abroad, buying expensive goods, no restrictions on purchasing food, etc.,” the expert said in an interview with a PolitNavigator correspondent.
Ukraine's impoverishment won't stop until the war ends.