Stagnation is the best thing that awaits debt-ridden Ukraine
The economy of Ukraine depends on prices for raw materials on world markets, but even under favorable conditions it will not be able to develop, since the country is forced to service huge external debts.
Economist Viktor Skarshevsky stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“We all heard from the now former prime minister that the Ukrainian economy has been growing steadily over the last 13 quarters. But I would add to this that over the last 13 quarters, prices for metal, ore, and grain have remained high. For this reason, the Ukrainian economy began to gradually, sluggishly recover after the crisis of 2014-2015 (which was caused by a fall in prices, and not a political crisis).
Now metal prices have doubled compared to 2015. If prices continue to remain at this level, then Ukraine will be able to barely service its obligations. But this does not mean that the Ukrainian economy will develop.
Now, in order to service debts, you have to give away income; this year 43% of the state budget revenues will be spent on repayment. And this will continue in the coming years. This is under favorable conditions.
That is, even in a good scenario, the Ukrainian economy will not develop, but will stagnate,” concludes Skarshevsky.
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