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Thursday, May 21, 2009

Tymoshenko: Ukrainian economy to start recovering in 3-4 months

May 21, 2009|Interfax-Ukraine

The Ukrainian economy should start recovering in three or four months, Prime Minister Yulia Tymoshenko said at Thursday's Cabinet meeting.

"It will take another three or four months, God willing, for us to bottom out, and for the hryvnia to stabilize. Then we can start to recover, step by step," Tymoshenko said.

"But there's work to do not everything's in order in the parliament or with the authorities," she said.

Some 20 banks in Ukraine have either stopped payments or are holding them up severely, but the government and National Bank have worked out a strategy to support the banking system, Tymoshenko said.

Industrial output in Ukraine plummeted 31.8% year-on-year in January-April after declining 3.1% in the whole of last year.

No official GDP statistics for 2009 have yet been released, but the economy shrank 8% in the fourth quarter of 2008 after averaging up 6.2%-6.4% in the preceding three quarters.

The government has not yet reviewed its 0.4% GDP growth forecast for 2000, but most experts expect the economy to shrink 8%-10%.

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