Ukraine: Exports to the rescue
(by Vasily Astrov)
in: Will Exports Prevail over Austerity?, wiiw Current Analyses and Forecasts No. 6, July 2010, pp. 126-129
In Ukraine, export-led economic recovery is underway, fuelled by the pick-up in global steel prices and the recent competitiveness gains due to the marked currency depreciation.
At the same time, domestic demand remains weak, contributing to ongoing disinflation.
For 2010, we expect GDP growth close to 4%, with gradual acceleration in the years ahead.
Viktor Yanukovych's victory in the presidential elections and the subsequent formation of a pro-Yanukovych government have put an end to the stalemate which had persisted over the past few years, albeit partly at the cost of a certain curtailment of political freedom.