While the EU countries have reached the pre-epidemic level of economic development or even topped it, economic recovery in Ukraine proceeds extremely slowly. According to MP Serhiy Lovochkin, the main reason behind its stagnation was the Cabinet’s ill-preparedness for the energy crisis.
“The price increase in the energy sector had been predictable for it resulted from economic recovery of the world’s leading nations and, consequently, an increase in demand for energy resources. The entire world understood this, and only Ukrainian government was surprised by it. Due to its unprofessional measures, we have come to being the only state now that buys gas exclusively from the spot market with its sky-high prices,” the politician said.
According to him, the nation’s second problem is extremely low volumes and lack of consistency in state support for basic industries amid the epidemic, which resulted in record-high unemployment (9.9 percent with the use of ILO methodology in the first half of 2021 among population aged 15–70).
“The government has failed to understand funding priorities amid the coronavirus epidemic. It was seemingly obvious that funding of healthcare and economy support programs should be prioritized, as it was done in all countries of the European Union. But in Ukraine, funding of the government machine and security forces remained the priorities,” the MP said.
“It was because of such activities of the Cabinet of Ministers that the National Bank was forced to decrease its forecast for GDP growth in 2022 from 3.8 to 3.1 percent. The business also has negative expectations which translates into extremely low rates of capital investment recovery. No one believes in the current government’s ability to at least not harm the domestic economy. Therefore, the matter of resignation of the entire Cabinet of Ministers has become the key one for the nation,” Lovochkin summed up.
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