Quality goods in Ukraine will become less accessible - forecast
The Ukrainian government has done everything possible to ensure that the domestic market is filled with low-quality goods.
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An expert from the Public Security Foundation, Yuriy Gavrilechko, stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“Unfortunately, next year the trend of stagnation and rising prices in the domestic market will be strengthened by the coordinated policies of the National Bank and the government. First of all, due to the fact that the forecast inflation rate - 9% - is half less than the NBU discount rate - 14%. With such a difference in the cost of money (which is determined by the NBU discount rate) and the planned price increase of 9%, most manufacturers will be forced to use various types of offshore schemes when selling their products abroad and leave profits there. Because, returning their profit here, they will lose about 5% of the cost for each unit sold. A profitability of 5% on export positions is quite high, and not everyone can afford to lose this money. This will lead to the fact that here, within the country, prices will rise with a shortage of quality products, because the only way to maintain production volume is the production of low-quality products,” says the expert.
Yuriy Gavrilechko also recalled that since September 13 of this year, GOST standards are no longer mandatory in Ukraine.
“There are no penalties for violating them. My prediction in September that the abolition of GOST standards will definitely lead to restrictions on online commerce (since large networks will lobby for an exclusive opportunity to become an intermediary between Western manufacturing companies and the Ukrainian consumer) came true on December 7, when the Verkhovna Rada adopted Law No. 6776, which significantly limited the ability of Ukrainians to independently buy something abroad.
I want to sympathize with all of us - imported and cheap goods for the majority of the population of Ukraine will become even less accessible. And smugglers and trading networks will be very happy about this. This will be an additional factor in price growth next year, which will also affect the poverty level,” he said.
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