EU Commissioner: Ukraine's GDP Will Increase 6% After Signing Association Agreement

KYIV, Ukraine, October 14, 2013 /PRNewswire/ --

Once the free trade regime between the EU and Ukraine is fully introduced the GDP of the latter is bound to increase by more than six percent annually. Such statement was made by the European Commissioner for Enlargement and European Neighborhood Policy Štefan Füle during the roundtable discussion in the Ukrainian parliament.

In his address the EU Commissioner talked about the new transitional provisions for the Ukrainian producers that are going to be introduced to help Ukrainian economy adapt to the EU standards. "Negotiations on the liberalization mechanisms provide for the protection of Ukraine's economy, so that the changes don't come too fast," said Füle, as reported by Ekonomichna Pravda.

Reportedly, the international audit company Ernst and Young estimates Ukraine's current GDP growth at 1.1 percent, while the IMF stated that the GDP of Ukraine in 2013 was expected to remain at zero percent. The 2013 state budget estimates the nominal GDP in 2013 to reach approximately UAH 1,576 trillion (approx. USD 197 billion) maintaining the GDP growth at 3.4 percent.

Now that Ukraine goes through reforms and is getting ready to sign the Association Agreement (AA) and the Deep and Comprehensive Free Trade Area Agreement (DCFTA) with the EU, the eastern European country claims it is ready to do all the "homework" that may arise while AA and DCFTA are implemented, as noted by Prime Minister Mykola Azarov.

DCFTA will undoubtedly create unique opportunities for accelerated modernization of the Ukrainian economy, improving its investment attractiveness, and increasing competitiveness of Ukrainian manufacturers, said the Prime Minister. The implementation of technical regulations and standards requires a lot of work and significant investment, he noted, expressing hope that the Commission would grant Ukraine adequate financial and technical assistance to support the competitiveness of domestic products.

The EU, on the other hand, was ready to provide financial assistance to Ukraine in the amount of EUR 186 million, as noted by Commissioner Štefan Füle. He also added that there was a possibility of allocating EUR 610 million after all the conditions of the European Union are met. Besides, the EU official promised to support Ukraine in its future negotiations with the IMF on the account of getting another loan.