Zelensky’s mega-project “Big Construction” did not help the Ukrainian economy
The “big construction” of Vladimir Zelensky, within which the population was promised large-scale road repairs, turned out to be an ineffective waste of huge funds for Ukraine and did not have a positive effect on the country’s economy.
Economist Viktor Skarshevsky writes about this in the Focus publication column, PolitNavigator correspondent reports.
Ukraine spent a billion dollars on interest alone on loans for “Big Construction” in 2019-2021. And next year, the cost of servicing loans for road construction will amount to UAH 15,8 billion.
Viktor Skarshevsky does not believe that road repairs really have a multiplier effect and are a driver of economic growth. This effect has, for example, investment in the processing industry. “Road repairs, by definition, cannot be a driver of economic growth,” writes the economist.
Indeed, in 2021, Ukraine’s GDP will grow by only 3%, which will not even cover the 4% decline in 2020. Previously, growth was forecast at 4,6%, that is, the country’s economy is not growing at the expected pace.
The “Big Construction” had no effect on the unemployment rate - according to official data, employment in the country continues to fall.
If there is any positive effect, it will be for the economies of other countries, for example, for Turkey, from where construction equipment and workers came, as well as for Belarus, where bitumen was purchased.
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