{ "title": "IMF Staff Concludes Mission to Ukraine", "publication": "IMF News, September 27, 2019", "sourceUrl": "https://www.imf.org/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission", "canonical": "https://www.imf.org/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission", "overlayPath": "/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission/index.md", "summary": "Press Release No. 19/356", "publishDate": "2019-09-27", "sections": [ { "heading": "Mission details", "content": "- Press Release No. 19/356\n- Mission led by Ron van Rooden visited Kyiv during September 12-26 for the 2019 Article IV consultation and to initiate discussions on a potential IMF Extended Fund Facility (EFF) program.\n- Statement date: September 27, 2019" }, { "heading": "Economic assessment and recent achievements", "content": "- Ukraine has restored macro-economic stability following the 2014–15 crisis and growth has resumed.\n- Current growth pace: 2½–3½ percent.\n- Overall fiscal deficit: limited to just above 2 percent of GDP in the last two years and expected to remain at the same level this year.\n- Energy sector quasi-fiscal deficit: eliminated.\n- Current account deficit: 3–3½ percent of GDP.\n- International reserves: recovered to over US$20 billion.\n- Banking sector: decisive efforts to restructure the banking system have been critical for stabilization and the resumption of growth." }, { "heading": "Constraints to faster, inclusive growth", "content": "- Per capita GDP (in PPP terms) in Ukraine: just 20 percent of the EU average, the second lowest level of all Central and Eastern European countries.\n- Labor productivity: amounts to less than 10 percent of average productivity in EU countries.\n- Key structural impediments:\n - Weak business environment with shortcomings in the legal framework.\n - Pervasive corruption; progress in institution-building to fight corruption has not yet yielded tangible results.\n - Large parts of the economy dominated by inefficient state-owned enterprises or by oligarchs, deterring competition and investment.\n- Investment, notably foreign direct investment, has been much lower than in regional peers, limiting productivity growth, private sector job creation, and improvements in living standards.\n- Resulting labor migration: many workers seek job opportunities abroad." }, { "heading": "Policy priorities and recommendations", "content": "- Maintain macro-economic stability as a prerequisite for faster growth.\n - Prudent fiscal policies to ensure debt sustainability.\n - Improve spending efficiency and outcomes—including in health care and education.\n - Support vulnerable households through a well-targeted social safety net.\n - Cautious monetary policy to further reduce inflation and build reserves within a flexible exchange rate regime.\n - Safeguard financial stability while strengthening financial intermediation and minimizing fiscal costs from bank resolutions.\n - Ensure central bank independence.\n- Accelerate structural reforms to lift growth:\n - Firmly establish the rule of law, including through judicial reform.\n - Decisively tackle corruption.\n - Enhance competition and open up markets, particularly in the energy and agricultural sectors.\n - Reduce the role of the state and oligarchs in the economy.\n - Ensure wage growth is consistent with improvements in labor productivity to safeguard competitiveness.\n - With sustained reform implementation, further integrate with the European economy and supply chains and take greater advantage of the Deep and Comprehensive Free Trade Agreement with the EU." }, { "heading": "IMF program discussions", "content": "- Authorities have requested a new IMF-supported program to anchor policies and help cover financing needs in the coming years.\n- Mission started discussions on a new 3-year arrangement that could be supported under the IMF’s Extended Fund Facility.\n- Productive discussions occurred on fiscal and monetary policies and key reform measures; importance underscored of central bank independence, safeguarding financial stability, and minimizing fiscal costs of bank resolutions.\n- Discussions on the new program will continue in the coming weeks.\n\nSource: IMF Staff Concludes Mission to Ukraine (Press Release No. 19/356), September 27, 2019.\n\n---\n\n\n References\n\n- Ukraine and the IMF\n- Press Releases\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission" } ], "bullets": [ "[Markdown version](/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission/index.md)", "[Structured JSON version](/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission/index.json)", "[Bundle manifest](/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission/bundle-manifest.json)", "Published: September 27, 2019", "Press Release No. 19/356", "Mission led by Ron van Rooden visited Kyiv during September 12-26 for the 2019 Article IV consultation and to initiate discussions on a potential IMF Extended Fund Facility (EFF) program.", "Statement date: September 27, 2019", "Ukraine has restored macro-economic stability following the 2014–15 crisis and growth has resumed.", "Current growth pace: 2½–3½ percent.", "Overall fiscal deficit: limited to just above 2 percent of GDP in the last two years and expected to remain at the same level this year.", "Energy sector quasi-fiscal deficit: eliminated.", "Current account deficit: 3–3½ percent of GDP.", "International reserves: recovered to over US$20 billion.", "Banking sector: decisive efforts to restructure the banking system have been critical for stabilization and the resumption of growth.", "Per capita GDP (in PPP terms) in Ukraine: just 20 percent of the EU average, the second lowest level of all Central and Eastern European countries.", "Labor productivity: amounts to less than 10 percent of average productivity in EU countries.", "Key structural impediments:", "Investment, notably foreign direct investment, has been much lower than in regional peers, limiting productivity growth, private sector job creation, and improvements in living standards.", "Resulting labor migration: many workers seek job opportunities abroad.", "Maintain macro-economic stability as a prerequisite for faster growth.", "Accelerate structural reforms to lift growth:", "Authorities have requested a new IMF-supported program to anchor policies and help cover financing needs in the coming years.", "Mission started discussions on a new 3-year arrangement that could be supported under the IMF’s Extended Fund Facility.", "Productive discussions occurred on fiscal and monetary policies and key reform measures; importance underscored of central bank independence, safeguarding financial stability, and minimizing fiscal costs of bank resolutions.", "Discussions on the new program will continue in the coming weeks.", "[Ukraine and the IMF](http://www.imf.org/external/country/UKR/index.htm)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission/index.md", "json": "/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission/index.json", "bundleManifest": "/en/news/articles/2019/09/26/pr19356-ukraine-imf-staff-concludes-mission/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T23:06:24.638Z" }