Dollar in 2015 will not overcome the barrier of 17 hryvnia - experts

9 December 2014 18:10  4586716 087645
Dollar in 2015 will not overcome the barrier of 17 hryvnia - experts

Subject to receiving financial assistance from the international financial institutions, dollar will not overcome the barrier of 17 hryvnia.

This is stated in the analytical report prepared by the International Blazer Fund, the "Kyiv Post" informed.

"Macroeconomic prospects of Ukraine for 2015 have deteriorated due to the war in the east. The economy is projected to continue to decline this year. The state budget deficit in 2014 is 4% of GDP," - the report states.

As noted, the industrial production stabilized somewhat in October due to high grain yield, offsetting losses from new trade restrictions by Russia.

In 2014, the grain harvest in Ukraine set a new historical record - 63.7 million tons of grain have already been harvested, and at the end of harvest campaign, the figure may reach 64 million tons.

Due to continuing hostilities in the eastern Ukraine, the hryvnia devaluation and economic recession, the state budget deficit of Ukraine (including that of "Naftogaz") is predicted to rise to 12% of GDP this year.

It is also noted that the depletion of foreign reserves, external debt and delay in payments of financial assistance from the IMF influenced the fall of the hryvnia.

"The pressure on the hryvnia is likely to continue in 2015, but financial assistance from international financial institutions should help Ukrainian currency to keep above 17 per dollar" - the report states.

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