"We will reduce the budget deficit and stabilize the public debt, weakening the tax burden and extending the tax base. We will reduce inflation, provide credits to the economy and develop the financial market. We will improve the financial and expenditure autonomy of the regions," Yanukovych said.
President Yanukovych discussing economic reform at a meeting of the Committee for Economic Reform. I regret being too glib on the CDS post, I should have reviewed the economic data before wondering why Ukraine was high on the default risk. Here's Ukraine's inflation from 2003-2010. As one can see Ukraine had high inflation in 2009, though inflation may come down this year. The IMF recommends that Ukraine reduce inflation to 5- 6 percent by 2014 and quickly cut the deficit.
| Year | Inflation rate (consumer prices) | Rank | Percent Change | Date of Information |
|---|---|---|---|---|
| 2003 | -1.20 % | 216 | 2002 est. | |
| 2004 | 5.20 % | 72 | -533.33 % | 2003 est. |
| 2005 | 12.00 % | 200 | 130.77 % | 2004 est. |
| 2006 | 13.50 % | 205 | 12.50 % | 2005 est. |
| 2007 | 11.60 % | 198 | -14.07 % | 2006 |
| 2008 | 12.80 % | 208 | 10.34 % | 2007 est. |
| 2009 | 25.20 % | 213 | 96.88 % | 2008 est. |
| 2010 | 12.30 % | 202 | -51.19 % | 2009 |
Inflation Chart Ukraine 2003-2010, IndexMundi
Unfortunately don't have figures on the budget deficit over the years, below is external debt.
| Year | Debt - external | Rank | Percent Change | Date of Information |
|---|---|---|---|---|
| 2003 | $14,200,000,000 | 47 | 2002 | |
| 2004 | $16,130,000,000 | 51 | 13.59 % | 2003 |
| 2005 | $16,370,000,000 | 55 | 1.49 % | 2004 est. |
| 2006 | $23,930,000,000 | 57 | 46.18 % | 2005 est. |
| 2007 | $48,870,000,000 | 42 | 104.22 % | 30 October 2006 |
| 2008 | $69,040,000,000 | 39 | 41.27 % | 31 December 2007 |
| 2009 | $101,700,000,000 | 36 | 47.31 % | 31 December 2008 |
| 2010 | $104,000,000,000 | 33 | 2.26 % | 31 December 2009 est. |
The is a graph showing Ukraine's currency crash against the dollar, from Google Finance. The screen grab is a bit poor, but one can't miss the sharp drop in hryvnia's value against the dollar in late 2008.
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