Agreement with Turkey threatens Ukraine with import of record inflation
The free trade agreement signed with Turkey threatens Ukraine with an inflationary shock.
The director of the Institute for Economic Development of Ukraine, Alexander Goncharov, writes about this in his blog, as reported by PolitNavigator correspondent.
“Do the Ukrainian authorities know that in these winter days of 2022, Turkey is the riskiest country for investment in emerging markets?! And is it really possible that, like Turkey, a powerful inflation shock awaits us?!” the economist notes.
He points out that record high inflation in Turkey last month rose to 48,7% after 36,1% a month earlier, which the authorities cannot cope with.
“Finally, all Ukrainians need to understand that Ukraine, having signed an agreement on a free trade area with Turkey, will receive record external inflation from this country.
Well, we’ll see how the Ukrainian authorities will get out, but most likely it will be the usual way - at the expense of the remaining savings and meager salaries of our poor and very patient population. By the way, isn’t that why the National Bank has already worsened the inflation forecast in Ukraine for 2022 from 5% to 7,7%, taking into account the implementation of a number of pro-inflationary factors?” Goncharov sums up.
The agreement with Turkey threatens Ukraine with record inflation.