According to Ukrainian MP Nina Yuzhanina, achieving the projected inflation rates in 2024 is unlikely to happen. The current economic situation in Ukraine and the government’s policies are not conducive to controlling inflation, which poses a major challenge for the country’s economic stability.
Inflation is a persistent problem in Ukraine, with the country experiencing high inflation rates in recent years. In 2020, the inflation rate reached 5% and is expected to increase to 6% in 2021. This is a cause for concern as high inflation can have a detrimental effect on the economy, leading to a decrease in purchasing power, increased prices of goods and services, and a decline in overall economic growth.
Nina Yuzhanina, a member of the Verkhovna Rada (Ukrainian Parliament), has been vocal about the government’s inability to control inflation. In a recent statement, she expressed her doubts about the government’s ability to achieve the projected inflation rates in 2024. Yuzhanina believes that the current economic policies, such as the increase in gas prices and the devaluation of the national currency, will only exacerbate the inflation problem.
One of the main reasons for the high inflation rates in Ukraine is the constant devaluation of the national currency, the hryvnia. The devaluation of the hryvnia makes imported goods more expensive, leading to an increase in prices for consumers. This, coupled with the increase in gas prices, has a domino effect on the economy, leading to higher inflation rates.
Moreover, the government’s policies, such as the increase in social welfare payments and the minimum wage, also contribute to the inflation problem. While these policies may seem beneficial for the citizens, they put a strain on the country’s budget and can lead to an increase in prices for goods and services.
Yuzhanina also points out the lack of effective measures taken by the government to control inflation. The National Bank of Ukraine has been criticized for its monetary policies, which have not been able to curb inflation effectively. The government’s decision to increase gas prices, which was recommended by the International Monetary Fund (IMF), has also been met with criticism, as it will further increase the cost of living for Ukrainians.
The current economic situation in Ukraine is also affected by the ongoing COVID-19 pandemic. The pandemic has had a significant impact on the country’s economy, leading to a decrease in economic activity and an increase in unemployment. This has also contributed to the inflation problem, as people have less disposable income, making it difficult for them to afford basic necessities.
In order to tackle the inflation problem, Yuzhanina suggests that the government needs to implement more effective economic policies. This includes controlling the devaluation of the hryvnia, reducing government spending, and promoting economic growth. She also emphasizes the importance of cooperation with international organizations, such as the IMF, to find solutions to the country’s economic challenges.
In conclusion, the projected inflation rates for 2024 in Ukraine seem unlikely to be achieved. The current economic policies and the effects of the COVID-19 pandemic have made it difficult for the government to control inflation effectively. MP Nina Yuzhanina’s concerns about the country’s economic stability should be taken seriously, and the government should take immediate action to address the inflation problem. Cooperation with international organizations and the implementation of more effective economic policies are crucial steps towards achieving a stable and prosperous economy for Ukraine.
