IMF Staff Country Reports

This 2008 Article IV Consultation highlights that rapid domestic demand growth in Ukraine pushed the economy beyond its capacity in 2007–08, leading to accelerating inflation. The demand expansion, fed by fiscal and income policies and a capital-inflow driven surge in money and credit growth, in combination with rising food and energy prices, gradually lifted CPI inflation to more than 30 percent by end-April 2008. Executive Directors have commended Ukraine’s continued strong economic growth and increased overall resilience to shocks. They have also expressed concern that some macroeconomic vulnerabilities have increased.