Ukraine: Request for Stand-By Arrangement and Cancellation of Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

IMF Staff Country Reports, January 8, 2019

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Canonical URL: Ukraine: Request for Stand-By Arrangement and Cancellation of Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Ukraine

The Ukrainian authorities have been able to restore macro-economic stability and growth following the severe economic crisis of 2014–15.
However, efforts to create a more dynamic, open, and competitive economy have fallen short of expectations, and the economy still faces important challenges.
Investment, particularly foreign direct investment, is held back by a difficult business environment.
Large numbers of worker seek job opportunities abroad as economic growth is too low for incomes to noticeably close the gap with regional peers.
Reserves have recovered, but remain relatively low, while the economy is still vulnerable to shocks.

Macroeconomic stabilization and recovery after the 2014–15 crisis.
Structural weakness: insufficient progress toward a more dynamic, open, and competitive economy.
Investment constraints: foreign direct investment hindered by a difficult business environment.
Labor migration: large numbers of workers seeking job opportunities abroad.
External position: reserves recovered but remain relatively low and the economy is vulnerable to shocks.

Subject: Banking, Currencies, External debt, Fuel prices, Money, Pension spending, Prices, Public debt, Revenue administration
Keywords: CR, Currencies, distribution tariff, Europe, Fuel prices, Global, heating company, heating tariff, IMF staff estimate, ISCR, macro-economic stability, prudent fiscal policy, regime