![]() ![]() Indeed, the weak process in implementing reforms affects the investment climate in the country, impacting the economy as a consequence. On the other hand, 93% of surveyed companies advocated that eradicating corruption and implementing real judicial reforms are crucial steps the government should take to improve the business climate and attract foreign investment. According to the survey published in September 2021 by the American Chamber of Commerce and Citi Ukraine, 61% of surveyed companies indicated the possibility of a new lockdown as their biggest concern. At the same time, companies are aware that it could limit the recovery process. ![]() Indeed, Ukraine has among the lowest vaccination rates in Europe, with only 17.2% of the population fully vaccinated at the end of October 2021 and a high vaccine hesitancy. The number of cases and hospitalisations have increased amid the slow vaccination process in autumn 2021. The COVID-19 pandemic still poses a risk to the recovery process. Rising food and energy prices made inflation accelerate to 11% in September 2021, which triggered several interest rate hikes from the National Bank of Ukraine (reaching 8.5% as of November 2021). Household consumption (74% of GDP) will remain a growth driver, with inflation slowing down because of higher base effects and the price stabilisation of the highest inflationary components. Higher volumes of exports, thanks to strong harvests, should still contribute to the first months of 2022. Moreover, Ukraine benefited from a strong rise in prices for its major export products, including cereals and iron. In 2021, the economic recovery was supported by a surge in household consumption and investments, however, a large part of growth was thanks to a favourable base effect and the pre-pandemic level was not reached.
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