The Organization for Economic Co-operation and Development (OECD) believes that the establishment of the rule of law, reduction of the regulatory burden, support of competition and innovation, as well as improvement of access to financing are important factors for the recovery of Ukraine and the growth of investments. About this it is said in the economic review “OECD: Ukraine 2025”.
The report states that Russia’s full-scale aggression has caused significant damage to Ukraine and caused the forced displacement of about a quarter of the population. Despite this, thanks to effective policies and substantial international support, the economy was able to partially adapt to the new conditions.
However, the OECD stresses that security risks, labor shortages and energy problems continue to hold back economic activity, while levels of displacement, unemployment and poverty remain high. Although Ukraine is implementing a number of reforms, the formation of effective institutions and a stable market economy requires a stable political base.
The document emphasizes that achieving macroeconomic stability will require controlling inflation through monetary instruments and, under favorable conditions, limiting the budget deficit in line with medium-term guidelines.
The OECD indicates that successful recovery and reconstruction will require transparent and sound management of public finances. It is about the need to increase the efficiency of expenditures and attract domestic revenues, while maintaining external financial support.
As soon as the situation stabilizes, it is necessary to create conditions for the return of demobilized military personnel and internally displaced persons to working life, to facilitate the return of emigrants and to expand the participation of women in the labor market, which will be a guarantee of inclusive growth.
“Improving the business environment by strengthening the rule of law, easing regulatory burdens, promoting competition and innovation, and improving access to finance will be key to the recovery and will help boost investment, productivity and export growth,” – emphasizes the OECD in its review.
