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Economic situation in Ukraine

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Ukraine should develop domestic production and domestic consumption in order to tackle the crisis, Leader of NGO Front of Changes Arseniy Yatseniuk has said.

He was speaking live on regional radio in the town of Pavlohrad in Dnipropetrovsk region on Sunday, August 30, the press service of the Front of Changes reported on Monday.

"We were hit by the crisis just for one reason - we have no domestic market. We attracted foreign loans, gave these loans to Ukrainian banks, and the Ukrainian banks took these funds and gave them as loans to Ukrainians. We raised these loans as individuals and then sent this money abroad through the purchase of imported goods. That's why, Ukraine has been financing foreign economy over the last five years," Yatseniuk said.

He said that the development of the domestic market of goods consumption was very important for economic growth in Ukraine.

"[It's very important] if we produce and consume ourselves. This is what currently helps, for example, China have high indicators of economic development," Yatseniuk said.

"Nobody in the world knows when the crisis will end. There are first signs of global economic improvement in Japan. But these signs are only quarterly - 0.9% growth was registered there... Ukraine has not yet reached the bottom of crisis," he said.

Yatseniuk forecast that the economic situation in Ukraine would start improving in 2011.

"I think that 2010 should become a year of stabilization, while 2011 a year of gradual growth owing to two things. The first one foresees a new industrialization through infrastructure development, the construction of plants, roads, as well as the development of the energy sector, industry and agriculture. The second one foresees the development of the consumption market inside the country. These are the two ways out of the situation for Ukraine to start resuming economic growth," he said.
VIA: Interfax-Ukraine 
Written by: Sashko Tuesday, 01 September 2009 17:07