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Ukraine: Ten Shocks

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  • Poluneev, Yuri

    (The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise)

Abstract

As of 2014, Ukraine faces unprecedented economic challenges as a result of the unresolved conflict and escalation of military actions in the eastern part of the country that have had severe impacts on its domestic stability, industrial base, financial sector and relationship with Russia and the West. Ukraine’s economic struggles are the consequences of ten shocks: 1) the shock of “forgotten” reforms and weak competitiveness; 2) the “27 minus 4” shock; 3) the exports and market loss shock; 4) the budget shock; 5) the energy shock; 6) the currency devaluation shock; 7) the income shock; 8) the balance of payments shock; 9) the banking crisis shock; and 10) the debt shock. A peaceful resolution of the conflict and restored economic cooperation amongst all parties involved should be achieved as soon as possible to reduce the negative effects of the shocks and to avoid an unmanageable economic crisis.

Suggested Citation

  • Poluneev, Yuri, 2015. "Ukraine: Ten Shocks," Studies in Applied Economics 27, The Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise.
    • Handle: RePEc:ris:jhisae:0027
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