ODESA. Sept 28 (Interfax-Ukraine) – Nomura International analyst Timothy Ash has predicted that the macroeconomic situation in Ukraine will stabilize in 2016.
“Our expectations on macroeconomic stabilization have come true. Despite the large deficit of the budget, the balance of solvency is becoming stable, outflow of capital fell, payments are settled and stabilization is growing,” he said at the Odesa Financial Forum on Thursday.
He said that the improvement of investment climate in Ukraine is only possible thanks to the fight against corruption.
“Ukraine is very attractive for investors with cheap workforce. In addition, there is large potential in agriculture and metal sector. There is a large potential interest of investors to Ukraine. When peace is seen, you’ll be surprised how quickly money will come here,” Ash said.
He added that the end of the military conflict in Donbas, political stability and successful reforms would allow Ukraine to achieve economic growth of 2-3% a year, and in the ten-year outlook the country has a chance of becoming a full and valued member of the European Union.
Chairman of Corporate and Investment Business at BNP Paribas in Ukraine and Kazakhstan Dominique Menu said that large international financial aid weakens the internal financial market.
“Maybe, the situation should be transformed into investment funds and creation of new jobs. The aid of the IMF is a rescue raft. Mechanisms for attracting foreign investors should be created,” he said.