Wednesday, February 25, 2015

Things Will Get Much Worse before They Get Better for Ukraine Economy - Russia Insider

NOTE: This article is two days old, but the stated exchange rates are history. The official exchange rate is now 32.5:1 while rates on the black market range from 38 - 45. Another story about this soon.

A recent note by Ukraine-based investment firm Concorde Capital paints a worrying picture for the near future of Ukraine’s struggling economy.

Currency weakness, inflation levels, as well as contractions in industry and manufacturing output have all worsened in 2015, following already poor figures in the final months of 2014.

Since the beginning of the year, the hryvnia’s official rate has fallen against the dollar by more than 1.5 times, or by UAH9.79, to UAH26.05 per dollar.

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An inflation forecast of 26% – up from an initial 13.1% – means that a nominal GDP increase of 20% on year will still see the overall economy of Ukraine shrink by 7% in real terms this year.

Complete story at - Things Will Get Much Worse before They Get Better for Ukraine Economy - Russia Insider

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