Expert: Ukraine will face rising inflation and devaluation of the hryvnia

President of the Center for Market Reforms, ex-Minister of Economy of Ukraine Volodymyr Lanovoy believes that in 2021 Ukraine will see inflation rise to 14%.

Lanovoy is sure that the revenue side of the state budget of Ukraine will not be fulfilled, and therefore “the deficit at the end of the year will be much more than the planned UAH 250 billion”.

“To finance this deficit, the state will have to resort to new borrowings. However, it is still unnoticeable that foreign creditors were eager to lend to Ukraine. And if so, it means that you will have to find money in the domestic market. This, in turn, suggests that the banks will again have no money, and they will not be able to lend, that is, our farms, industrial and other sectors will decline”, – the expert emphasized.

Former Minister of Economy of Ukraine believes that in the absence of foreign exchange earnings from abroad, the hryvnia will certainly devalue. According to him, “for a country with such a budget deficit, from which even the IMF was shocked, there is no point in issuing new loans. Interest rates will be very high, and the situation will be deplorable in industry, agriculture, transport and other sectors”.