The Ministry of Economic Development, Trade and Agriculture has predicted that inflation will be at the level of 5.5% in Ukraine in 2020, Minister of Economic Development Tymofiy Mylovanov wrote on Facebook.
“According to the ministry’s baseline forecast (scenario one), inflation forecast (consumer price index) for the next 3 years will be the following: 5.5% in 2020; 5.3% in 2021; and 5.1% in 2022,” Mylovanov wrote.
He also added that under the ministry’s optimistic scenario inflation was expected to reach 5.8% in 2020, and 5% in 2021 and 2022.
“The difference between baseline and optimistic forecasts is in the share of investments in the economy. The optimistic scenario envisages 3 billion more foreign investments. This scenario requires a better business climate, no corruption in government and local government, efficient judicial system, and reforms (including the liberal land market and privatization),” the minister wrote.
According to Mylovanov, the optimistic scenario predicts higher inflation by 0.3% in the first year due to a larger percentage of investments.
“In the coming years inflation will be slightly lower, by 0.3% and 0.1%, respectively. This will take place due to an increase in production and added value in the economy after investments take effect,” the official concluded. (Ukrinform/Business World Magazine)