Ukraine’s economy is at a fragile state. Without foreign aid, it will likely face bankruptcy. The EU and the IMF have come to the rescue, yet both tagging along new challenges.
As the government is working to solve its’ economic issues, Ukraine a country of 46 million is struggling to stand on its’ own two feet. Its’ acting Prime Minister Arseniy Yatsenyuk has predicted it will shrink by at least three percent this year. Moody’s Investor Service has recently lowered the country’s credit rating to Caa3, two steps above default.
These factors are making it hard to succeed in Ukraine’s business world. The International Monetary Fund has promised support, with a bailout package of almost 18 billion dollars, however it comes with conditions that include the increasing of taxes cutting of subsidies to natural gas.
Months of protests that lead to the ousting of President Yanukovych and the on-going crisis with Russia is certainly not helping. Doing business in such an environment has many difficulties.
Ukraine Struggles to Prevent BankruptcyUkraine's economy is at a fragile state. Without foreign aid, it will likely face bankruptcy. The EU and the IMF have come to the rescue, yet both tagging along new challenges.
One of the main challenges small and medium sized business owners are facing in Ukraine is the volatility of exchange rates. During the last three months the Ukrainian hryvnia has weakened by almost 45% against the U.S. Dollar.
Public servants in Ukraine are also among those hurt by the condition of the economy. Some in the medical industry are already considering making shifts.
The Interim government has taken steps to try to ease and support the country’s economy. However it is certain that tough times are expected here in Ukraine, and its’ citizens are preparing for it.