Moody’s: Ukrainians still the poorest in CIS

In 2017-2018, GDP per capita in Ukraine will remain the lowest in the Commonwealth of Independent States (CIS), UNA reports referring to the statement of Jaroslav Sovgyra, Associate Managing Director at Moody’s Investors Service.

Addressing CIS Bankers VI Ukrainian Banking Forum, Sovgyra said GDP per capita in Ukraine will make up a bit more than 2,000 USD by the next year, and even if adjusted to the purchasing power, it will reach 5-6,000 dollars at best.

“If GDP per capita is that low, this means that the population continues to be very poor,” Sovgyra said.

He recalled that GDP per capita in Russia will be above 10,000 dollars during the coming years, in Kazakhstan, it will be more than 8,000 dollars, in Belarus – over 6,000 dollars, in Azerbaijan – over 4,000 dollars, and in Armenia – about 4,000 dollars.

According to him, absolute GDP in Ukraine is very low. Of course, if the rate does not change dramatically, GDP will grow to 3,000 dollars in a couple of years and reach 4,000 dollars in another 3-4 years. The expert said he looked through Ukraine’s GDP indicators for better times and it was about 8,000 dollars in 2008 and fell to about 4,000 dollars in 2013.

Now it is as low as 2,000 dollars, the Associate Managing Director at Moody’s Investors Service said. “How many years will it take the population to live as it lived before the crisis?” he asked.

Although Ukraine will ensure a higher GDP growth than other CIS countries will do during the coming years, he said, in absolute terms that indicator will remain extremely low.

Impoverishment of Ukrainians continues amid growing state debt that reached $76.56 billion (1,958,37 billion hryvnias) on August 31, 2017. Experts say, Ukraine went beyond its “debt safety limit” after Jan-Aug 2017 and can no longer borrow finds and repay loans painlessly.