Ukrainian economy on the verge of recession
Ukrainian economy on the verge of recession
Author(s): Arkadiusz Sarna
Subject(s): Governance, Economic policy, Developing nations
Published by: OSW Ośrodek Studiów Wschodnich im. Marka Karpia
Keywords: Ukrainian economy; recession
Summary/Abstract: In the third quarter of 2012, Ukraine’s economy recorded negative growth (-1.3%) for the first time since its 2009 economic crisis. Q4 GDP is projected to suffer a further decline, bringing Ukraine into formal recession. In addition to the worsening macroeconomic indicators, Ukraine is also facing a series of concomitant economic problems: a growing trade deficit, industrial decline, shrinking foreign exchange reserves, and the weakening of the hryvnia. Poor economic growth is expected to result in lower than projected budget revenues, which in turn could lead to the sequestration of the budget in December. The decline evident across the key economic indicators in the second half of 2012 brings to a close a period of relative economic stability and two years of economic growth, which had been seen as a significant personal achievement of President Viktor Yanukovych and the ruling Party of Regions.
Series: OSW Commentary
- Page Count: 8
- Publication Year: 2012
- Language: English
- Content File-PDF