MP Taruta said that Ukraine is in serious economic recession
Negative dynamics of foreign trade, the budget deficit, high rates of decline in industrial production and large-scale labour emigration suggests that Ukraine is in serious economic recession. About it said MP from the "Batkivshchyna" Serhiy Taruta at the first meeting of the initiative group "Ukraine-2030", which took place in the Verkhovna Rada Committee on issues of economic development.
According to the policy to exit the crisis an urgent need to develop and implement an effective strategy of sustainable development of Ukraine.
"I Want to emphasize that estimates of employers' organizations, in 2019 was lost 370,000 jobs at the enterprises of Ukraine. Practically, this means that a city with a million people moved to another country. The Ukrainian economy is in recession. We need a clear and effective strategy for economic development. And, in my opinion, out of the crisis, Ukraine needs to urgently move from the model of liberal economic policies to the protection of the industrial sector", - said the MP.
the Politician said that the Ukrainian economy is no longer sufficient margin to operate without a clear strategy, so the main thing now is to establish an effective and quick work.
"it is Necessary that the government of Ukraine - the present and the next have clear benchmarks for its activities, and about these benchmarks knew society. If the execution of such tasks the government is not the appropriate intellectual resources, he needs to work more closely with representatives of the real sector, who are ready to cooperate with the government to implement the already established policy documents and joint efforts with the government to go to the formation of the necessary legislative acts", - said Sergey Taruta.
Earlier it was reported that in November 2019, the State statistics service of Ukraine recorded a drop in industry by 7.5% compared to the previous month. When you consider that in November of calendar and working days was less than the decline in production is 6.9%. For the period from January to November, 2019 the index of industrial production fell by 1.2% in comparison with January-November 2018.
In General, over the eleven months of 2019 the largest contribution to the fall in the index of industrial production made the following industries:
- reduction of steel production by 2.8% reduced the index by 0.41%;
- reduction engineering 4.8%, in particular, manufacture of electrical equipment by 20.8%, reduced the index by 0.36%;
- decrease production of motor vehicles, trailers and semi-trailers by 26.1%, in particular, production of units, parts and accessories for motor vehicles 28.3% led to the reduction of the index of industrial production by 0.31%;
- the decrease in production of gas; distribution of gaseous fuels through local (local) piping 11.1% led to the reduction of the index by 0.3%;
- reduction of production, transmission and distribution of electricity 2.2% reduction in the index by 0.29%.
From these data, we can conclude that the decline in industrial production affects not only the extractive industries, and manufacturing of products with high added value and economic activities once dominated by the Ukrainian products.
"and Unifying key factor of falling industrial production is unreasonable strengthening of national currency. This is due to the policy of the National Bank, which long time keeps interest rates high, thereby supporting the high level of interest rates, and policy the lack of proper steps for buying foreign currency, which comes from non-residents for the purchase of government securities", - considers neskhodovsky, Director of the Institute of socio-economic transformation.
However, the Western partners of Ukraine believe that the country's economy is developing properly, and the government Alexey Goncharuk in the first four months of operation, has achieved great success. According to the expert of the German Advisory group in Ukraine Robert Kirchner, which quoted "Deutsche Welle", Ukraine has demonstrated in 2019 one of the highest GDP growth in recent years - probably about 3.5% in real terms.
"the Economy is moving in the right direction. Of course, it is not only the achievement of the government in four months, here the role of the National Bank and the previous government", - said Mr. Kirchner.