Archive 2013

• Monthly Economic Monitor Ukraine No.3 (149)

  11.03.2013
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  • Highlight: Ukraine-EU Summit - UKRAINE AND EU: MOMENT OF DEFINITION
  • Politics: Ukraine did not arranged new program with the IMF due to absence of political will to conduct necessary reforms.
  • Real Sector: Industrial output declined by 3.2% yoy due to lower production in export-oriented sectors.
  • Energy sector: Production of solar energy surged due to state support. However, its share remained negligible at 0.3% of total energy produced.
  • Agriculture: Agricultural producers again face tight financial conditions to finance seeding campaign.
  • External sector: Export fell by 3.5% as strong demand for Ukrainian fertilizers and grain was not sufficient to offset stagnant global market for steel and falling exports of machine building products.
  • Fiscal policy: Central fiscal deficit amounted to UAH 1.6 bn in January. Nevertheless, central fiscal expenditures (general fund) were financed at only 82.4% of target.
  • Social policy: Expenditures of the Pension Fund in 2013 are planned to account to near 16% of GDP, which is high by international standards.
  • Labour market: Wage growth decelerated reflecting decline in economic activity.
  • Monetary policy: In February, CPI fell by 0.5% yoy marking fourth month with negative CPI growth.
  • Financial markets: In February, UAH/USD exchange rate continued to fluctuate in tight range around UAH 8.10 mark on interbank market.
  Issue:  No.3 (149) March 2013