Despite the difficult circumstances on the border with the aggressive neighbor, Donald Trump’s victory and internal political problems, Ukraine's economy is slowly but surely recovering and gaining momentum. That is also the view of the international rating agency Fitch that reported on increase of the Ukraine long-term debt rating.
Thus, the country's rating in foreign and national currencies increased from CCC to the B- level. The main reason for an upward revision was a significant reduction of risks that Ukraine will be left without external funding. Besides, Ukraine’s international reserves increased by $2 billion in the last 10 months to $15.5 billion. The inflow of funds was observed after growth in cost of the exported products, a flexible exchange rate and stabilization of domestic situation. Fitch believes that by 2018 Ukraine’s account deficit will grow to 3 percent, against 0.2 percent last year. This year inflation will reach 14.9 percent compared with 48.5 percent a year earlier. Public debt is projected to go up to 74 percent by the end of this year. GDP growth may accelerate to 2.5 percent in 2017 against 1.1 percent in 2016 and could reach 3 percent by 2018.
According to Fitch, increase in external liquidity, well-balanced fiscal policy and improved macroeconomic performance are among factors that contribute to the Ukrainian economy.
