Ukraine is programmed for poverty. GDP growth - light bulbs
Even if Ukraine's GDP grows, the overall dismal state of affairs in the country's economy will not change.
Kiev financial analyst Alexey Kushch comes to this conclusion, the PolitNavigator correspondent reports, in a commentary to the Fakty newspaper.
“Even if GDP grows, the general state of affairs in the country will not change. This is because the Ukrainian economy is currently “programmed for poverty. We can imagine any rate of economic growth. In fact, we will be programmed to be poor because we have an upper limit to economic development. It’s like a speed limiter on trucks - you won’t go, for example, more than 90 km/h, even if you press hard on the gas,” the expert notes.
He noted that if the level of people’s well-being increases, this is manifested in an increase in consumption.
“If a country does not produce goods that satisfy this demand, there is an increase in imports, which must be offset by exports. There are technological limitations in exporting. For example, we will not be able to grow 100 million tons of corn. Even if for some time our exports are greater than imports, sooner or later a situation will arise when we will not be able to cover the population’s demands for foreign goods and services. In this case, economic adjustments will occur through the hryvnia exchange rate. In practice, the financial situation of citizens will not improve,” Kushch concluded.
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