Curbing inflation a top priority
25 March 2008
Published in
Inform
issue #66
See the full issue here.
Prime Minister Yulia Tymoshenko told a session of the recently formed Council of Investors that her government was determined to curb inflation and create transparent conditions for business.
The premier indicated that forces were at work intent on thwarting the reforms. “Every step, aimed at creating transparent procedures, meets with fierce resistance, but we will prevail,” said Ms Tymoshenko.
Ahead of a report this month that highlights the progress made by her government in its first 100 days in office, the premier said that controlling inflation was a top priority for the government.
See the full issue here.
Prime Minister Yulia Tymoshenko told a session of the recently formed Council of Investors that her government was determined to curb inflation and create transparent conditions for business.
The premier indicated that forces were at work intent on thwarting the reforms. “Every step, aimed at creating transparent procedures, meets with fierce resistance, but we will prevail,” said Ms Tymoshenko.
Ahead of a report this month that highlights the progress made by her government in its first 100 days in office, the premier said that controlling inflation was a top priority for the government.
Underlining the fact that her administration had
inherited an inflation rate of 17 percent from the
previous government, she said that her administration
required 6 months for its anti-inflationary measures
to take effect.
“It is impossible to reduce inflation in two weeks which was increasing during the previous one and a half year,” said Ms Tymoshenko. “However we have the right team in place and are deploying measures that we expect will bear fruit in about 6 months time.”
The premier pointed out last week that month-on-month inflation had actually slowed to 2.7 percent in February from 2.9 percent in January, and said “this is a positive trend that needs to be built upon in the coming months so that by the middle of the year, we can put inflation in its place.”
However, Minister for the Economy, Bohdan Danylyshyn warned that tough anti-inflation measures might “lead to a fall in industrial activity.”
Economic Optimism
Figures released show that exports of goods and services were up 14 percent in January at $3.657 billion while imports increased by 1.5 percent. Also, Fitch Ratings gave Ukraine the thumbs up, raising the country’s long-term and local issuer ratings, saying, “Ukraine's credit fundamentals are improving owing to solid growth supported by rising investment and FDI. WTO entry in 2008 is positive news, while public debt remains low.”
Although Fitch Ratings expressed some caution over the issue of inflation and risks in the banking sector, government officials remain confident that inflation levels can be kept within single digits by the end of the year.
“It is impossible to reduce inflation in two weeks which was increasing during the previous one and a half year,” said Ms Tymoshenko. “However we have the right team in place and are deploying measures that we expect will bear fruit in about 6 months time.”
The premier pointed out last week that month-on-month inflation had actually slowed to 2.7 percent in February from 2.9 percent in January, and said “this is a positive trend that needs to be built upon in the coming months so that by the middle of the year, we can put inflation in its place.”
However, Minister for the Economy, Bohdan Danylyshyn warned that tough anti-inflation measures might “lead to a fall in industrial activity.”
Economic Optimism
Figures released show that exports of goods and services were up 14 percent in January at $3.657 billion while imports increased by 1.5 percent. Also, Fitch Ratings gave Ukraine the thumbs up, raising the country’s long-term and local issuer ratings, saying, “Ukraine's credit fundamentals are improving owing to solid growth supported by rising investment and FDI. WTO entry in 2008 is positive news, while public debt remains low.”
Although Fitch Ratings expressed some caution over the issue of inflation and risks in the banking sector, government officials remain confident that inflation levels can be kept within single digits by the end of the year.