The potential reintegration of Donbas might add up to 1.5 percentage points (pp) to Ukraine’s GDP growth during two or three years, Bank of America (BofA) has said in its analytical review.
BofA said that the potential integration of territories could increase nominal GDP by 3-5 pp and accelerate growth by 1-1.5 pp in the period after the post-war recovery.
The analysts said that the post-war recovery might be partially financed with external donor assistance.
Both Donetsk and Luhansk regions accounted for more than 15.7% of Ukraine’s GDP in 2012, before the war. The contribution of these regions, still under Ukrainian control, fell to about 12.7% of GDP in 2017. BofA believes that this might indicate a one-time increase in relation to nominal GDP values of at least 3%.
According to the analysts, the normalization of economic relations with the region could accelerate the growth of real GDP in the first year by 0.5 pp.
The founder of Alibaba Group Jack Ma has said at the Kyiv International Economic Forum that he fell for Ukraine a long time ago and sees a large potential for development.
“Such a wonderful combination like this cannot fail,” he said at the forum, noting the fertile land, open and ready for change people, beautiful women and rich history among Ukraine’s advantages.
The founder of Alibaba said that there are few countries in the world where the president is a trifle over forty, the prime minister is thirtysomething, and some ministers are 28, and this is positive.
Ma said that he would invite his business partners to visit Ukraine.
In his opinion, Ukrainian-Chinese relations should be actively developing.
He also called for changing the situation when AliExpress products go to Ukraine from four to seven days “like in the last century.”
During his visit to Ukraine, Ma met with the president, visited a number of universities and will also be on a visit to the UNIT.City innovation park.
A meeting of the Ukrainian-Polish intergovernmental commission for economic cooperation will be held in the near future, Ukrainian President Volodymyr Zelensky has said. “Poland is already our second largest trading partner in the EU, but the potential of this cooperation has no borders,” he said at a joint press conference with President Andrzej Duda in Warsaw, Poland, on Saturday.
Zelensky hopes for an active dialogue between the governments of the two countries in the framework of the intergovernmental commission for economic cooperation.
He expressed hope that the next meeting of the commission will take place in the near future.