On the seventh anniversary of independence the State Statistics Committee gladdened the nation and mainly its government with the announcement that the GDP growth continues in Ukraine.
According to the statistical data reported by Interfax-Ukraine actual GDP in January-July was100.4% over same time the previous year and in July 101.6%.
But many ask questions like where is comes from. Agricultural production is falling, the metallurgy complex cuts exports, the oil sector reduces its extraction of hydrocarbons, machinery lies in ruins, while the light and food industries are simply destroyed. The budget deficit is Hr 1,586,500,000 in the first six months of 1998. According to official information, the number of unemployed rose to 246,600 as of August 1 from the same time last year. Well, where does this GDP increase come from?
The experts say that the increasing volume of domestic bonds' sales can serve as a natural source. Bonds are the main source for covering the state budget deficit. Is this really worth considering an achievement?
Ph.D. in economics and chief research fellow in the Economic Predictions Institute of the Ukrainian National Academy of Sciences Andriy Revenko said, commenting the quality of this statistical index, that it can get about a B. He believes that the index of industrial production can be slightly overestimated, because in fact enterprises define acceleration for themselves. Under the pressure of local administrations and in various sectors a slight overestimation may take place. Revenko notes that this has anything to do with unfairness. Further fall was exhausted back when the GDP was decreasing 13.3% annually. And the current announcement on its growth displays that the temperature of a patient dropped from 1040 to 1020C. Does that mean he is recovering? Still, let us hope that this is correct data, Revenko concludes. "For instance when they speak about a GDP increase in construction, but I hardly understand what has been built. I am afraid that consuming excessively expensive imported materials" has influenced the index.






