Priority for this year, the government has identified economic growth

Priority in 2016 will be the restoration of economic growth. This is stated in the report of the Cabinet of Ministers of Ukraine published on the government portal.

Negative dynamics of the GDP is due to the situation in the Donbas — the government report
The government announced the facilitation of doing business in Ukraine

«This job is as challenging for government, and the real sector of the economy and restoring macroeconomic stability. Ukraine will again be forced to face new challenges, existing independent of our circumstances. This deepening of the fall in world prices for major export commodities of Ukraine, as well as the adoption by the Russian Federation politically motivated decisions to restrict imports of goods from Ukraine and the Ukrainian transit through the territory of Russia», — the document says.

According to the report, the loss of external markets is a challenge for Ukrainian producers to which they must respond by increasing the level of competitiveness. The only way out of this situation — modernization of production.

«For its part, the government will respond to these challenges by intensifying processes of economic reform, the deepening of cooperation with the European Union and the extension of protection of national commodity producers and exporters in foreign and domestic markets, elimination of trade barriers, promotion of Ukrainian exports and attracting investments», — the document says.

Negative dynamics of the GDP is due to the situation in the Donbas — the government report

More than 40% negative contribution to GDP dynamics of Ukraine due to the situation in the Donetsk and Lugansk regions. This is stated in the report of the Cabinet of Ministers of Ukraine published on the government portal.

«In General the military conflict in the East of Ukraine found the production vulnerability of the economic system as the region and economy as a whole. According to the Ministry, over 40% negative contribution to GDP dynamics was connected with the situation in the Donetsk and Lugansk regions. Thus, excluding the impact of these regions, the fall in GDP by the end of 2015 amounted to 5,9 %, industry – by 5.2 %, agricultural production – 2,9 %, construction at 9.1 %, » — said in the report.

In turn, obtaining financial and credit assistance from the IMF, agreement on the restructuring of the external public debt, the intensification of the processes of economic reform and deepening of cooperation with the European Union are important steps towards achieving economic stabilization, sustained slowdown of waves.

«If in April 2015 on an annual basis prices rose by 60.9%, which was primarily due to the negative impact of the worsening military conflict (the panic among the population), the devaluation of the national currency and increase of tariffs for housing and communal services (in particular natural gas and electricity), already by the end of 2015 the growth of prices amounted to 43.3%», — stated in the document.

In addition, in response to the achievement of macroeconomic stabilization has been the suspension of the negative trends in the investment sphere. This is the main indicator, which indicates an improvement in future expectations.

«So, in January-September, 2015 volume mastered capital investments fell by 6% compared with a decrease of 9.2% in January-June of 2015 and 23% in January-September 2014. Significant support to improve the situation in the area of major investment was the expansion of state investment support, in particular defence activities of the country, development of information technology, the growth of trust of investors and renewed flows of foreign direct investment,» the report said.

Summarizing the results of 2015, the government notes that despite difficult political and economic challenges that appeared in 2015, challenges in restoring macroeconomic stability and halting the decline of the economy the government has done.

«Business expectations, population and international creditors is an objective assessment which confirms this. So, according to the NBU, in the third and fourth quarters of 2015, the index of business expectations of the enterprises exceeded the value of 100%, which was not observed in the second quarter of 2014. In the fourth quarter, this figure reached 104% of maximum for the last year and a half. The consumer sentiment index showed an increase to 55.3 points in December of 2015, compared with 43.7 per point in March 2015 (data of GFK). Rating agencies Fitch and Moody’s upgraded long-term sovereign credit rating of Ukraine», — stated in the message.

As reported, the Verkhovna Rada of Ukraine at 4 am on 25 December was adopted the law of Ukraine on state budget for 2016, with a deficit 3.7% of GDP and the income of 595 billion USD. Previously the income was 601 billion.

The draft budget was finalized with the adopted on the eve of the laws that led to changes in the tax laws. The adoption of the budget was a key recommendation from Ukraine’s main creditor — the International monetary Fund, supported by the U.S. Treasury Department and the embassies of the countries «Big seven» in Ukraine.

The government announced the facilitation of doing business in Ukraine

Last year the government has completed the development of the Concept of deregulation and has received the first tranche of financial assistance from donors for its implementation. This is stated in the report of the Cabinet of Ministers of Ukraine published on the government portal.

«In 2015, developed the Concept of deregulation, which focuses on building effective regulatory field, more responsible attitude of governments to create new regulations and elimination of inefficient rules and regulations. In September negotiations were completed with donors and received the first tranche of technical assistance from the canadian government to implement reforms», — stated in the report.

In addition, the program was signed with the EU on funding of the office of effective regulation for 3 years, starting in 2016.

«The office consists of 25 and will later be expanded to 70 experts (lawyers, business analysts and experts on free trade zone with the EU) on an ongoing basis will be to analyze the regulatory framework of Ukraine and to prepare the projects of normative documents on deregulation. Office of effective regulation focused on areas and industries that have the greatest value to small and medium business», — said in the government.

Also increased the efficiency of the government, which significantly reduced the time of passage of documents inside of the Cabinet.

«The amendments to the regulations of the Cabinet of Ministers, which simplifies negotiation of documents of the nature of deregulation, in particular the term of the agreement is reduced to five days, individual documents individual approval of the Prime Minister of Ukraine permitted to make to the Government for consideration without the prior approval of the Central Executive authorities», — stated in the report.

Earlier, Prime Minister of Ukraine Arseniy Yatsenyuk called the main guidelines of government policy for 2016: new jobs, new markets, new education and medicine, new infrastructure, fair privatization, further simplification of procedures in the sphere of providing administrative services. About this Yatsenyuk said in his address.

Previously it was also reported that investments in Ukraine are a reliable investment, because the current Ukrainian crisis is only a temporary phenomenon which will soon be replaced by economic growth. This opinion was expressed by the Minister of Finance of Ukraine Natalia Jaresko.

Priority for this year, the government has identified economic growth 02.02.2016

Февраль 2nd, 2016 by
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