state of economy

Interest rate and crediting: Interest rates showed because of the tight fiscal policy. A substantial decline has also been observed in the intermediation costs, i.e. the difference between lending and borrowing. Also the volume of credit deposits went up by 4.6% in February 2007.

International reserves: There was an increase in international reserves by 14.8% in 2006 and this amounted to USD 22.3 billion. Thus a 5.1 times increase in international reserves was seen in a five year period between 2002 and 2006. International reserves as on February 2007 is at USD 22.8 billion.

Other parameters which show the state of economy in Ukraine in 2006 (unless stated otherwise) are

Population below poverty line was estimated at 29% in 2003.
Labour force was 22.3 million in 2006, of which 25% was in agriculture, 20% in industry and 55% in services.
The officially registered unemployment rate is 2.7%, however International Labour Organisation calculates it to be 6.7%.
The Ukrainian planned consolidated budget shows revenue of USD 33.41 billion and an expenditure of USD 35.6 billion.
Public debt is at 12.7% of GDP.
External Debt stands at USD 48.87 billion .
Ukraine received economic aid of USD 463 million (1995) and IMF has extended facility of USD 2.2 billion in 2005.

Ukraine’s economy is likely to grow in 2007 but this growth is threatened as the government plans to reinstate tax, trade and custom privileges. Also, its dependence on Russia for energy supplies makes its economy vulnerable.                                                                                           

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