Highlight: Budget 2014 - ARE THERE CHANCES TO SURVIVE?
Politics: The Prime Minister of Ukraine Mykola Azarov stepped down on January, 28. According to the Constitution, resignation of Prime Minister resulted in the resignation of the Government.
Real Sector: According to the preliminary Ukrstat estimate real GDP did not change in 2013.
Energy sector: The Naftogaz again did not pay for gas to Russian Gazprom likely due to liquidity gap.
Transport: The Cabinet of Ministers approved the Concept of the State Economic Program for Development of Passenger Automobile Industry until 2020
Agriculture: Budget support of agriculture will increase in 2014, but its efficiency remains under the question.
Privatisation: The fulfillment of the privatization plan for 2014 will be a real challenge for the Government.
External sector: Financial and capital account surplus widened to USD 3.3 bn in December as the government raised USD 3 bn in Eurobonds from Russia and FDI surged to 0.6 bn.
Fiscal policy: The Government postponed fiscal consolidation, which further increases fiscal sustainability risks.
Social policy: Subsistence minimum and, as a result, minimum pension and minimum wage will be increased by 8.1% on average in 2014.
Labour market: Regional difference in wages remained high in 2013 and only five regions paid wages higher than average in economy.
Monetary policy: Headline consumer inflation was reported at 0.5% yoy in January.
Financial markets: Interbank UAH/USD exchange rate changed from UAH 8.2-8.3 per USD in the beginning of the year to over UAH 8.5 in the end of January.
