The investments, privatization and infrastructure projects are sources for the economic growth.
During several years in a row, Ukraine’s economy growth up to 5-7% will allow improving people’s living standards significantly, ICU Group Managing Director Makar Paseniuk said in the interview to LIGA.net. He reminded that IMF expects for the increase of Ukraine’s GDP growth rates by 2.5% in 2017, 3% in 2018, 3.5% in 2019, 4% in 2020-2021, Correspondent.net reports.
“It is good; if we compare with global economy, it is above the average. However, for us it is extremely little in order, amid this growth, not to continue feeling worsening living standards. In order the feelings are different, we need to achieve growth up to 5-7% and, if possible, for several years in a row. We speak about growth rates; this issue should become main in our country. People should invest their money in order the economy grows”, the expert clarified.
According to the investment banker, it is possible to achieve such high indicator. The sources for Ukraine’s economic growth are direct investments, privatization, infrastructure projects, sale of assets of the Individuals Deposit Insurance Fund, however, the privatization of all significant public properties will bring up to USD 1 million dollars in Ukraine’s economy and will not anyhow affect GDP growth.
“The real cost of these assets is USD 4-6 billion. When we sell these assets, we stimulate the relaunch of the economy. Why is US economy emerging from the crisis more rapidly? All these processes are automated. Not paid – bankruptcy-sold-farewell-wrote off-forgot-move forward. During the bankruptcy process, there is the possibility that the new, more efficient owner, who will invest and develop assets, create new jobs and pay taxes, will come instead of the previous low-performing owner”, Paseniuk noted.
In the meantime, the expert considers that the clear game rules, operating judicial system and extensive list of assets for investment and privatization are required for inflow of direct investments.
“Even the projects with the payback period of 30 years will be interesting for strategists, if they are correctly packed – I mean, pension funds, for instance. The pension funds should generate the return of funds. In Europe and USA, the positive return is rare. While such situation prevails, we need to draw them in, because 3 or 5% of income with account of potential growth may appear to be not a bad investment”, Paseniuk added.
Previously the State Statistics Service reported that the real Ukraine’s GDP in Q3 2016 increase by 1.8% versus Q3 2015.
