The return of migrant workers becomes a shock for Ukraine’s balance of payments
The return of a huge number of labor migrants to Ukraine due to the coronavirus epidemic will lead to serious financial problems for the country.
Kiev financial analyst Alexey Kushch told Izvestia about this.
He predicts a balance of payments shock in Ukraine.
“Before the crisis, the economy was supported by the money of migrant workers. In 2019 alone, they transferred $12 billion to their homeland. This amount compensated for the outflow of capital from the country, which amounted to $2019 billion in 8. Now the question is open about who will now compensate for the withdrawal of money,” the expert noted.
According to him, an active anti-crisis policy could help the Ukrainian economy: preferential loans for the creation of industries, tax breaks for maintaining jobs, state orders for industrial enterprises.
“But such measures are not even in the plans,” sums up Kushch.
The return of migrant workers is becoming a shock to Ukraine's balance of payments.