The IMF told when Ukraine will reach the level of Poland

Thu, 20.02.2020 14:31

Ukraine will be able to reach the level of Poland in 20 years and due to structural reforms. At the same time, partial reforms and growth at an average rate of 4% will solve this problem only by half, said Yosta Lyungman, Permanent Representative of the International Monetary Fund in Ukraine.

According to the representative of the IMF, in order to catch up with a neighboring country, the Ukrainian economy needs to grow at least 6% per year.

"This is a long-term project, it is impossible to complete the reforms in several years. Ukraine must support these reforms for all 20 years, it takes patience to at least catch up with neighbors," he said at a macroeconomic discussion at the American Chamber of Commerce in Kiev, Interfax-Ukraine reports.

Lyungman explained that structural reforms would provide the necessary investments for such growth and increased productivity. We are talking about achieving a level of GDP per capita of almost $ 30 thousand at purchasing power parity.

"Ukraine needs to grow by 7% per year in order to catch up with neighboring economies," added Dimitar Bogov, a leading economist for the region of the European Bank for Reconstruction and Development.

According to him, if Ukraine reduces the lag in the management level by 50% compared with the G-7 countries, this will add 1.2% growth annually. “The main threat is the loss of macroeconomic stability, which is the basis of growth,” the EBRD economist added.

Source: UBR

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