Yahoo Finance Ukraine’s economic course: Key priorities outlined in joint Ministry report
Ukraine’s Donor Coordination Platform, aimed at addressing macroeconomic risks and supporting stability, is tasked with developing a long-term plan until 2027, Interfax-Ukraine reported.
This plan, highlighted as the first priority of economic policy by the Economy and Finance Ministries, involves external financing and non-cash support.
"While the reforms outlined in the Reform Matrix are necessary, they alone are insufficient for faster economic recovery," said the jointly prepared Economic Policy Priorities report by the Economy and Finance Ministries.
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"Ukraine will require assistance from partners to implement additional measures both in the reform sphere and in other areas to realize its vision."
The second priority is to facilitate faster recovery by eliminating major constraints, ensuring air defense, meeting energy needs, ensuring stable and predictable access to external markets, overcoming labor shortages, and restoring critically important logistics (SEAL+). The document emphasizes the need for market liberalization measures, specified in terms and volumes, as well as access to EU funds.
"The logic of accession negotiations should ensure that the Ukrainian economy and society feel tangible benefits 'on the go,' even before the official accession to the European Union," said the report.
"Ukraine should strive for a rapid and accelerated integration process."
The authors assert that the third priority is to expand growth potential by complementing necessary structural reforms with investment and technology transfer commitments from partners, which will contribute to increased productivity and capital accumulation, with specific timelines and volumes specified.
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The Economy and Finance Ministries highlighted the Ukraine Plan under the Ukraine Facility as a good example of such an approach, where the implementation of reform and investment indicators of the Plan stimulates both external budget support and inflows of financing and investments for the private sector.
"Supplementing such measures with actual inflows of external financing and technology transfer through partnerships and joint ventures between Ukraine, the EU, and G7 countries will significantly improve the economy's productivity," the report said.
The authors outlined priority areas of development, including energy, transportation, agro-industrial complex, critical materials, and digital transformation, as indicated in the Ukraine Plan and at meetings of the Donor Coordination Platform.
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While external donors will remain an important funding source, there is a need for greater self-reliance in generating tax and non-tax revenues to finance the budget, given the constant high defense needs.
"We have begun preparing the Budget Declaration for 2025-27, which will form the basis for the preparation of the budget for 2025," the report said.
"We are committed to mobilizing the necessary additional revenues to meet further defense needs and implementing reforms to increase the efficiency of non-defense spending, including those that enhance the efficiency of the social protection system, improve the effectiveness of the education system, and mitigate fiscal risks in the pension system."
The authors affirmed that Ukraine will continue to take measures to reduce untaxed activities in the significant shadow economy and focus on measures to increase budget revenues and reduce corruption risks in customs administration.
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