Ukraine GDP to grow 5-7% annually, Zelensky says

Volodymyr Zelensky promised dramatic economic growth
for Ukraine during his presidency when addressing a business forum in Istanbul
on Aug. 8. Annual GDP growth will reach 5-7% yoy, fueled by at least USD 20 bln
invested in the development of at least 24,000 kilometers of highways, the
launch of 15 functioning airports and five seaports, “the tripling of the
capabilities” of the military-industrial complex, and the legalization of
gambling. The government will launch a farmland market, a competitive energy market,
the privatization of large state enterprises, and easing of business
conditions, said Zelensky, who invited Turkish entrepreneurs to invest. “My
team and I have a full mandate for change,” the president said. “We already
have a parliamentary majority, we will soon form a professional government and
we will select a decent prosecutor general. We will certainly use our chance to
change the country.”

The National Bank of Ukraine estimates Ukraine’s GDP
will grow 3.0% yoy in 2019, 3.2% in 2020 and 3.7% in 2021.

Zenon Zawada: Zelensky’s
growth estimates are possible to achieve because such growth rates are normal
for emerging markets similar to Ukraine. They will be especially realistic if
structural reforms and major initiatives are pursued at a brisk pace, which is
entirely possible considering Zelensky will have a loyal parliament and Cabinet
of Ministers. It will take years, if not decades, to implement an effective
judiciary, cut the bureaucracy and reduce corruption. But we believe Zelensky
has all the chances to achieve an economic leap during his presidency, even
with the warfare in Donbas.