KIEV: Ukraine lost two positions, and now ranks 49th among 77 emerging economies presented in the ranking, which covers 103 economies around the world. This is the second year the WEF has presented the index. In contrast to the traditional measure of economic growth – a country’s gross domestic product the WEF’s Inclusive Growth and Development Index is designed to capture other economic indicators, such as poverty levels, life expectancy, public debt, median income, wealth inequality and even damage to health and the environment caused by pollution. Ukraine gained only 3.42 points out of a possible maximum high of seven in the index. According to calculations based on economic figures as of 2016 and five-year trends from 2012 to 2016, inclusive economic development in Ukraine has decreased by 6.8 percent over the past five years. That party reflects the continuing decrease in the population: over the past five years, Ukraine’s population has decreased from 45.2 million to 42 million people. While access to quality education, basic services, and infrastructure in Ukraine is still quite high, the country’s score in financial assets protection, as well as corruption levels and political ethics is very low, according to Ukraine’s Inclusive Growth and Development Index Profile for 2017 – the latest one available. Since 2014, Ukraine’s economy has been through a major crisis provoked by Russia’s annexation of Crimea and fomenting of a war in the Donbas. This has led to the loss of approximately 15 percent of Ukraine’s economic potential, according to figures on the Reanimation Package of Reforms think tank’s website. The ongoing trade war with Russia has also had big negative impact on Ukraine, as from 2015 Russia started blocking exports of Ukrainian goods to Central Asia, and Ukraine stopped buying Russian gas and many other Russian products. That has been offset slightly by the signing of Ukraine’s Association Agreement with the European Union, which came into force in full in September, and which led to 2 percent economic growth in 2017, according to Ukraine’s State Statistics Service. Meanwhile the IMF bailout program, which has already provided $8.6 billion out of a promised $17.5 billion in loans since 2015, has helped Ukraine stabilize its exchange rate and boost budget revenues. Nevertheless, the Ukrainian government’s continued foot-dragging in anti-corruption reforms, and still over-regulated and bureaucratic economy has kept its score in the inclusive development index down.
Turkish president to attend meeting with Ukraine
Turkey's president will attend the eighth meeting of a high-level strategic council with Ukraine in its capital Kiev. The Turkish...
