Director of the World Bank for Ukraine, Belarus and Moldova Satu Kahkonen says that economic growth in Ukraine may accelerate by 3-4% amid reforms
'In addition to some noteworthy reforms implemented in recent months, deeper structural reforms to bolster investor confidence and productivity are needed to raise economic growth to 3-4% in the medium term,' she said while presenting World Bank’s latest Ukraine Economic Update on Thursday, Unian reports.
'Such reforms are all the more important in light of headwinds from the global economic environment and the conflict in the east of Ukraine,' she said, RusDialog reports.
The World Bank says that safeguarding macroeconomic stability will require addressing the largest sources of fiscal risk. This includes broadening the tax base, reforming the pension system, managing quasi-fiscal liabilities and addressing financial sector vulnerabilities.
Unlocking productivity will require more effective public investment, creating a level playing field for the private sector, reforming land governance, and facilitating trade.
Providing more effective services and targeted assistance to the population will require health financing reform, effective decentralization, and improved targeting of social assistance.
Tackling corruption and improving governance are central priorities on the road toward sustained recovery and shared prosperity for the population.
World Bank kept its economic growth forecast for Ukraine in 2016 unchanged at 1% with a further increase to 2% in 2017 and 3% in 2018.
The World Bank projects inflation in 2016 will be 13%, it will go down to 8.5% in 2017, and further down to 6.5% in 2018.
As reported earlier by 1492news.com, Poroshenko: 'I hope UAH 129 billion will be allotted for the defense and security sector.'