Ukraine’s GDP growth will reach 3.2% in 2020 with a further acceleration to 3.6% in 2021, Morgan Stanley predicts.
Since the prospect of land reform is becoming more defined, the bank is raising its forecast for the economic growth of Ukraine and the hryvnia exchange rate. Now it expects GDP growth by 3.2% in 2020 with a further acceleration to 3.6% of GDP in 2021. The bankers also forecast the hryvnia exchange rate of UAH 26.5/$1 at the end of 2019 and UAH 27.5/$1 by the end of 2020.
According to the report, Morgan Stanley also expects the first tranche from the International Monetary Fund for Ukraine before the end of this year, which could follow the adoption of the law on the national budget of Ukraine for 2020.
An annual increase in the number of foreign tourists by at least 500,000 and a twofold increase in the number of Ukrainians traveling outside their region are some of the criteria for the effectiveness of the Ministry of Culture, Youth and Sports, according to the government’s program of activities through 2024.
“To do this, it is planned, first of all, to determine the place of Ukraine on the tourist map of the world, create brands from existing points of attraction and launch a program to promote them,” says the document, which was published to the parliament’s website.
Joining existing European tourist networks and cultural routes is also planned.
According to government estimates, successful implementation of the program will help increase the share of cultural, creative product, sports and tourism from 12% to 14% of GDP.
The Ministry of Economic Development, Trade and Agriculture in 2018 said the number of foreign tourists visiting Ukraine decreased by about 400,000 for the first time in three years, amounting to 14.2 million people. At the same time, in the previous two years it grew rapidly: in 2017 – by almost a million and in 2016 – by 1.2 million.
Despite a decrease in the total number of tourists in 2018, Ukraine’s State Border Service recorded an increase in their number from countries that do not have common borders with Ukraine: from Spain – by 68%, Great Britain – by 47.3%, Lithuania – by 23.4%, Italy – 15.4%, Germany – 13.3%, France – 9.2%, and India – 57.4%, China – 38.8%, Japan – 38.3%, Israel – 21.7% and the United States – 19%.
Official rates of banking metals from national bank as of October 1
One troy ounce=31.10 grams
National bank of Ukraine’s official rates as of 01/10/19
Source: National Bank of Ukraine
Prime Minister of Ukraine Oleksiy Honcharuk states that the government does not intend to raise taxes.
“We as a government do not plan to raise taxes, this is the wrong way. The state should not increase the amount of resources that it passes through itself,” Honcharuk said on the air of ICTV Channel on Monday evening.
According to him, the state should create incentives so that people are not afraid to invest in their business, and then develop it.
The Cabinet of Ministers of Ukraine intends in the next five years to increase the share of low cost air routes from Ukraine from 38% to 63%.
Such plans are contained in the government’s program (draft resolution No. 2186), posted on the parliament’s website.
According to the text of the program, for the specified period, the government intends to create conditions for a 60% increase in passenger traffic from Ukrainian airports from 20 million to 32 million people a year, as well as for increasing freight traffic from airports by 20%, from 94,000 tonnes to 112,000 tonnes per year.
In addition, the Cabinet also plans to stimulate the formation of an approximate average ticket price to the level of the average European indicator and increase the air mobility of the population by 10%, from 5% to 15%.
As reported, in January-August 2019 Ukrainian airlines transported about 9.226 million passengers, which is 10.7% more compared to the same period in 2018.
