One of the important priorities of reforms in Ukraine should be attraction of foreign direct investment (FDI), as their amount is not enough for provision of potential economic growth of GDP of 6-7% a year, Head of the Group of Strategic Advisors for Support of Reforms in Ukraine Ivan Miklos has said.
“One of the most important priorities should be to bring more FDI… Today, for example, direct investment as their share of gross domestic product in Ukraine is around 15%. To have this growth (6-7% a year), and this is not a theory, this is the experience other countries, the share of investment should be around 25% of GDP,” Miklos said on Channel 5 TV late on Friday, January 19.
He said that in 2017, FDI to Ukraine totaled $2 billion.
“This is too small for the Ukrainian economy… There are three main sources of investment: public finances… loans… and the most important source of investment is FDI. This is linked to the rule of law, privatization,” Miklos said.
He said that in 2017, the economic growth in Ukraine was less than 2.5% of GDP.
“This year we expect 3.5%. This means that there is some growth, but it is not enough: I think that Ukraine has a potential to have economic growth of around 6%, maybe 7%,” he said.
