Lovochkin: Drop in Capital Investments Hits Economy’s Recovery Chances
Capital investments in the Ukrainian economy shortened by 9.5 percent in the first quarter of 2021 compared to the same period last year, and this speaks of the government’s failure to build the right relations with businesses. This was stated by OPPOSITION PLATFORM – FOR LIFE MP Serhiy Lovochkin commenting on the most recent data by the State Statistics Service.
“The plans to revive the economy in the second half of 2021 are in jeopardy. Capital investments significantly decreased in the first quarter, and there is only one explanation: the government is incapable of creating a business climate that would attract them. The problem has been around for a while: over the past two years, the volume of capital investments dropped by 40 percent. Ukrainian Ministers of Economy come and go, but their approach to the economy remains the same: the government still doesn’t see it as a priority,” Lovochkin said.
The MP added that in Q1 2021, the situation was the worst in the manufacturing industry, which saw a 12.4-percent decrease in capital investments compared to Q1 2020, construction (a 19.2-percent drop), and trade (-21.9 percent).
Sixteen out of 25 Ukrainian regions have received less capitals investments in Q1 2021 compared to Q1 2020, while their volume dropped by a quarter and more in the Donetsk, Vinnytsia, Volyn, Kirovohrad, and Odesa regions.
“The government must refuse from hand-controlling the nation’s economy. The businesses want to see a projected economic policy for many years, or even decades ahead. Otherwise, the investments will never return in Ukraine,” Lovochkin said.