Raising tariffs cannot cure the country's economy - Institute for Economic Development of Ukraine

04 April 2023, 21:12 | Economy 
фото с Зеркало недели

In Ukraine, it is time to change the structure of the economy, and not to treat problems by raising tariffs, cutting government spending and social support for the electoral field. This was stated by the director of the Institute for Economic Development Alexander Goncharov.

" It cannot be cured by increasing prices for electricity and utilities,"

According to him, the NBU predicts a decrease in the unemployment rate and an increase in real incomes of Ukrainians only from 2024.. Therefore, Ukraine is waiting for further reductions in government spending, which will further aggravate the situation..

" Why? Because further cuts in government spending will further compress domestic demand and generate further cuts in 2023 budget revenues.. And this will prove to be a very heavy blow to the potential for exiting the "

At the same time, he believes, the ruling elite will continue to focus social spending on their voters in order to solve their electoral tasks..

" These two categories of citizens are the most numerous and basic for maintaining loyalty to the authorities,"

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The expert expressed his own vision of what steps the government should take in such a situation.

\? It is necessary, in accordance with Article 50 of the Law of Ukraine " And, of course, it is urgent to create in Ukraine an International Investment and Exchange Platform with a Universal Exchange (three sections - commodity, stock, derivatives), which will ensure the opening of about 4,000 new jobs,"

" At the same time, it will be necessary to change institutions, including political ones, - the expert added.

Recall that the NBU portrays the situation more optimistically, on April 3, which published the Business Expectations Index, and claims that business has improved its assessment of its prospects to the level of December 2021.

It is noted that in March, the index of business expectations (IODA) rose to 49. 5 from 45. 0 in February and reached the equilibrium level. This is the highest value since December 2021.

Источник: Зеркало недели