World Bank Predicts Economic Growth and Inflation

On February 10, Kyiv hosted the presentation of the joint World Bank-Cabinet findings, “Economic Growth on the Principles of Justice: The Ukrainian View.” This is the third, concluding volume of a fundamental work known as the Memorandum on the Economic Development of Ukraine. World Bank’s economic advisor John Hansen pointed out that the main conclusion ensuing from the findings is that partial reforms do not work, meaning there is no alternative to a full-scale economic reform.

Forecasting Ukraine’s economic indices in 2000, Mr. Hansen predicted GDP growth could register 1.5-2.0%, and if Ukraine’s public debt is restructured, Parliament backs economic reform, and the executive fosters business and improves the investment climate, even a 3-4% increment could be possible. Mr. Hansen prophesies annual inflation of 15-20%.