Ukraine's economy continues its steady growth into 2004 (07/04/04)

Ukraine's economy continues its steady growth into 2004

by Roman Woronowycz
Kyiv Press Bureau

KYIV - Ukraine's economy continued to sizzle in the first five months of 2004, marking the sixth consecutive year of steady and at times spectacular growth. In January through May of this year the Ukrainian economy grew 11.3 percent over its energetic expansion from the same period of last year, reported the State Statistics Committee on June 14. The May 2004 figure stood at 10.4 percent.

Growth in the country's economic sector has been relentless in the last six years, fluctuating from 4.4 percent to 10 percent each year. Last year it rose by 9.4 percent. The government has projected similar growth for this year.

More importantly, inflation, which was at four-digit levels in the early 1990s and remained at around 25 percent as recently as 2000, has dipped to below 10 percent. In 2003 inflation finished the year at 8.2 percent. Government predictions for this year put the pace of inflation at 5.8 to 6.3 percent.

Some experts at the National Bank of Ukraine, including Valerii Lytvytskyi, advisor to the central bank's chairman, have said that the recent price increases in gasoline and metal make the current projections unattainable. Mr. Lytvytskyi said on June 23 that he believes an inflation rate projection of less than 9 percent would be more realistic.

The development of the industrial sector, which grew by 17 percent in the first five months of this year, continued to drive Ukraine's strengthening economy. The highest production increases were registered in the machine-building industry (36.5 percent) and the pulp and paper sector (32.1 percent). Construction material production rose by 29.9 percent, while the lumber industry expanded by 25.1 percent.

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