Saturday, July 22, 2017

Ukraine economy continues to improve

National Interest:

(snip)

Most importantly, Ukraine is seeing signs of economic growth. Last year, GDP grew for the first time since the war started, at 2.3 percent. This year GDP is expected to grow 2 percent, and the World Bank expects 3.5 percent growth for 2018. Ukrainian exports of metals, iron ore and grain are on the rise as well.

The key driver of these macroeconomic improvements has been Ukraine’s adherence to the International Monetary Fund’s program for the country. In the beginning, many naysayers doubted Kyiv’s ability to meet the strict demands the IMF placed on it. Despite such rigid requirements, Ukraine is making good progress.

Ukraine is still a mess politically. However, things have gone from terrible to less terrible and this is what I look for when speculating in these frontier markets.

Ukraine has tremendous agricultural potential that is not fully tapped. Very large companies like Fairfax Financial based in Canada have begun taking positions in various Ukraine based agricultural firms like Astarta.


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