Ministry of finance supports the economy by optimism

Yesterday the Minister of finance Viktor Pinzenyk announced the beginning of Ukrainian economy recovering, which was assisted by nearly 50% devaluation of the hryvnia: domestic producer has become more competitive on inner market compared with importers, and export ability of Ukrainian companies sharply increased against the background of expenses cut. Experts strongly disagree with such optimism and do not see such positive changes.

…Mr. Pinzenyk tried to find reason for optimism even in the nation’s currency depreciation. He is sure that hryvna’s devaluation increases Ukrainian producers’ ability to compete with import goods on inner market. In his opinion the rise of dollar rate by 47,3% in the course of three months caused similar rise of import prices, but in the mean time domestic meet has risen in price only by 4%. The Minister thinks that now domestic producers must make prices lower to stop the decrease of consumption and production.
Experts are surprised by such forecast. Companies will not be able to replace all imported goods with Ukrainian ones, the President of Ukrainian Society of Financial Analysts Yuriy Prozorov supposes. "90% of industrial goods are imported, and there is an import part in foodstuffs production", Mr. Prozorov notes. Decrease of goods cost can happen only in II quarter caused by oversupply of products in the market.

The source: Ъ-Ukraine