Finance Ministry's forecast for 2017: UAH 27.2 to dollar, 3% GDP growth, 8% inflation

15:39, 30 March 2016
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The Ministry of Finance of Ukraine has submitted to the Cabinet of Ministers the main principles of the budget policy for 2017, based on forecasts that economic growth in 2017 will amount to 3%, the inflation will fall to 8.1%, the hryvnia exchange rate will settle at the level of UAH 27.2 to the dollar and a budget deficit will amount 3% of GDP, Deputy Finance Minister of Ukraine Roman Kachur said on Wednesday.

Photo from UNIAN

"In 2017, we expect further acceleration of GDP growth to 3%. We expect to reduce inflation to 8.1%, reducing the unemployment rate to 8.6%, and the hryvnia exchange rate at UAH 27.2 to the dollar," Kachur said. "We expect further fiscal consolidation and gradual reduction of the budget deficit – in 2017 to 3%, in 2018-2019 to 2.5-2.3%. In addition, we expect to reduce public debt to $66.8 billion in 2017 and reduce it in the future."

Read alsoEconomy Ministry forecasts industrial output growth of 2% over six mthsAccording to Kachur, key objectives of fiscal policy in 2017 will be the fulfillment of obligations to foreign creditors, preservation of social justice for the beneficiaries, preservation of social guarantees for servicemen, ensuring the country's defense. In addition, the Ministry of Finance expects to begin the transition to the medium-term budget planning in 2017.

"Particular attention is paid to education and research, the establishment of supporting schools, concentration of spending in priority areas of scientific activity, financing of priority projects," Kachur said. "A separate priority is the restoration of Donbas."

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