Problems Facing the Ukrainian Economy

Problems Facing the Ukrainian Economy

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Proximities

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Problems Facing the Ukrainian Economy

May 15, 2020

On May 13, the Ukrainian parliament adopted an important anticorruption bill that opens up the door for a much needed IMF loan by reforming the banking sector. The IMF loan will be crucial for Ukraine to meet its debt obligations this year and deal with the economic impact of COVID-19.

Besides corruption, the country faces two other major economic issues: the impact of the coronavirus and the ongoing conflict in its eastern regions. Despite the economic impact of the conflict, Ukraine’s economy was poised to grow with approximately 3,5% this year. As a result of COVID-19 and its associated measures, however, GDP is expected to contract 7,7% in 2020.