Ukraine will face further economic decline in 2015, – Academy of Sciences
Kyiv, December 24 (PolitNavigator, Vladimir Mikhailov) – In 2015, the Ukrainian economy will experience a further decline, says Valery Geets, director of the Institute of Economics and Forecasting of the National Academy of Sciences of Ukraine. He stated this at a meeting of the board of the Ukrainian Union of Industrialists and Entrepreneurs.
The decline will be primarily due to the lack of demand, he believes.
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“Now wages are frozen, and they will continue to be frozen. It is clear that the effective demand of the population does not have the opportunity to grow. Investment demand, which is generated by another sector of the economy, will also not grow, given the fact that our enterprises implement about 70% of investments at their own expense. At the end of the year, the losses of enterprises will exceed profits, and this will mean that the total mass of enterprises will not have the appropriate resource to invest, so demand will not grow.
Foreign investment in the conditions in which we now find ourselves will also not show growth,” the expert said.
Without touching on the escalation of the conflict in the east, Valery Geets noted that during the transition to a war economy, citizens of Ukraine will have to give up many things. “But the model, the organization of the military economy is very different from what we live in now,” the analyst says.
Ukraine faces further economic decline in 2015, says Academy of Sciences