Ukraine: 2003 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Ukraine.
IMF Staff Country Reports, June 19, 2003
Source details
- Canonical URL
- Ukraine: 2003 Article IV Consultation—Staff Report; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Ukraine.
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Bibliographic details
- Published: June 19, 2003
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451838961.002
Overview
- Real GDP of Ukraine grew by more than 4½ percent in 2002, marking the third year of Ukraine’s economic expansion following the 1998/99 financial crisis.
- Growth drivers included robust consumer spending (reflecting large wage increases) and an increase in net external demand.
- Consumer price inflation fell to near zero in 2002, primarily reflecting good harvests in 2001/02 and a sharp drop in food prices.
- Low inflation was also supported by a tightening of fiscal policy and delays in increasing administered prices.
Economic performance and drivers
- Real GDP growth: more than 4½ percent in 2002.
- Third consecutive year of expansion after the 1998/99 financial crisis.
- Domestic demand:
- Robust consumer spending, driven by large wage increases.
- External sector:
- Increase in net external demand contributed to growth.
Inflation and price developments
- Consumer price inflation: fell to near zero in 2002.
- Primary factors:
- Good harvests in 2001/02.
- Resulting sharp drop in food prices.
- Tightening of fiscal policy.
- Delays in increasing administered prices.
Policy environment
- Fiscal policy: described as tightened and contributing to low inflation.
- Administered prices: increases were delayed, supporting low inflation.
- No additional policy recommendations or scenarios are provided on the page excerpt.
Subject tags and keywords (as listed)
- Subject: Arrears, Credit, Currencies, Economic sectors, Energy sector, External debt, Money, Public debt
- Keywords: Arrears, Asia and Pacific, budget legislation, consumer price inflation, CR, Currencies, Energy sector, exchange rate, Global, government, government intervention, government program, ISCR