Ukraine plunged into economic depression and social destabilization
Ukraine met the global economic crisis with a drop in GDP, an outflow of investment, an increase in debt burden, and a decline in industrial production.
The Kiev online publication “Mirror of the Week” writes about this, a PolitNavigator correspondent reports.
“Immediately after the end of the quarantine, the attention of Ukrainian society will be focused on issues of the socio-economic viability of the state, in particular survival in the conditions of the global economic crisis provoked by the global quarantine,” the article says.
It is clarified that even before the spread of COVID-19, Ukraine was not economically successful or competitive in the world. Thus, in 2019, industrial production in Ukraine decreased by 1,9%, and in January 2020 the reduction was 5,1%.
“The domestic industry has still not been able to return to the level of 2012: at the end of 2019, the index of industrial production was 22,9% lower. The engineering sector experienced the greatest losses, in particular, the production of motor vehicles amounted to only 31,0% of the 2012 level, the car manufacturing industry - 29,7%, machine tool industry - 68,2%, metallurgy - 70,8%, agricultural engineering products - 68,4%." , – noted in the publication.
In addition, the authors point out, the country’s production and export specialization has undergone obvious degradation and is losing in terms of complexity: the automotive industry has reoriented from the production of vehicles to sets of wires for spark plugs, the carriage building - from rolling stock to wheel pairs, the agricultural engineering industry - from tractors to hinged mechanisms.
“Ukraine plunged into an economic depression with a fall in GDP, an outflow of investment, a rising debt burden, a decline in industrial production, exports and employment, and a decline in real household incomes.
Instead of creating a new development perspective, which can begin to be done in conditions of greater loyalty of international organizations, the country was threatened with social destabilization, since millions of people found themselves below the poverty line, which is exacerbated by the almost complete stop of economic activity under quarantine, and entrepreneurs, workers and youth lost business, jobs or places of study,” the publication summarizes.
As PolitNavigator reported, the ex-minister predicts that The country's economy will not survive quarantine.
Read also: Coronavirus is driving the Ukrainian economy into a hole.
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