KIEV, May 26, 2019 (BSS/TASS) – Ukraine in terms of GDP per capita remains
of the poorest countries in Europe, along with Moldova, Armenia and Georgia.
This is according to a World Bank special report titled “Tapping Ukraine’s
growth potential”, which is published on the organization’s website.
“The rate of economic growth in Ukraine remains too low to reduce poverty
and reach income levels of neighboring European countries,” the document
says.
The World Bank notes that at the growth rate of recent years, it will take
Ukraine more than 50 years to reach income levels of today’s Poland. “If
Ukraine’s productivity growth and investment rate remains at the low levels
observed in recent years, overt the medium-term the growth rate will converge
to almost zero per annum,” according to the report.
The World Bank points out that the Ukrainian economy “continues to be
constrained by unfinished reforms that lead to low productivity, over-
reliance on commodity-based exports, limited foreign direct investment and
global economic integration, and weak institutions.”
In order to change the situation for the better, the World Bank suggest
that Ukraine should carry out reforms in three areas: limiting the role of
the state in the economy; facilitating investments, improving logistics and
connectivity to fully leverage external trade opportunities; maintaining
stable macroeconomic policies, giving everyone an equal opportunity and
strengthening rule of law to make economic institutions more resilient.
Earlier, the World Bank maintained its forecast for GDP growth in Ukraine
in 2019 at 2.7%. Meanwhile, according to the estimates of the European Bank
for Reconstruction and Development, this year the country’s GDP growth will
slow to 2.5%.