PM Shmyhal: We expect Ukraine’s GDP growth will reach 5% next year

PM Shmyhal: We expect Ukraine’s GDP growth will reach 5% next year

05.10.2021 13:50

The state investment of over UAH 100 billion in infrastructure development has yielded a good multiplier effect in the economy, Prime Minister of Ukraine Denys Shmyhal has said in an interview with LB.ua.

The prime minister noted that funds invested by the state in the economy and infrastructure “ensure a multiplier of five, i.e. they give a fivefold effect on the economy from the initial investment in terms of taxes, wages, reinvestment.”

“I am convinced that this was one of the most important factors why the state’s economy did not decreased by expected 12%, as projected by some of our international partners and think tanks, but by 4% of GDP – this is one of the lowest indicators. Experts confirm that this is the effect of investments,” Shmyhal said, Ukrinform reports.

The prime minister noted that this year the Ukrainian government continues to accelerate the pace of economic development due to state investments in infrastructure.

“We expect that next year’s GDP growth will be up to 5% – this is also the result of investment. We are trying to develop the program [“Affordable Loans at] 5-7-9%” and develop a new program of mortgage lending at 7%, moreover, a State Financial and Housing Leasing Company will be created. All these things will facilitate economic development,” he said.

(C)UKRINFORM 2021

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