Country fails to retain visible economic growth, says Ukrainian prime minister
The government should systemically strengthen economic policy to focus on support for domestic production, as negative trends were observed in the country's economy in September, Ukrainian Prime Minister Mykola Azarov said.
"It seemed that at the end of the first half of the year the government's measures to boost the economy managed to overcome the recession trend of the beginning of the year… Unfortunately, the losses our economy faced did not allow growth to be maintained," he said while opening a cabinet meeting in Kyiv on Wednesday.
Azarov said that the September decline was linked to the bad situation on the external markets, complications in trade with the Customs Union, the stoppage of the petrochemical sector, and bad weather. The premier, who often exclusively announces the monthly pace of GDP, this time decided not to announce this indicator, commenting only on the pace of some sectors.
He said that the government's measures could change the situation in industry, as today some its sub-sectors showed growth, in particular the pharmaceutical sector, the production of metal rods and bars, meat production, and high technologies.
"On the one hand, there are sectors in which success should be supported and developed, and there are sectors which require additional stimulation measures. We should urgently use all of the available arsenal of economy stimulation [measures] and increase the responsibility of officials for the fulfillment of tasks set by the president and government," Azarov said.
He gave the production of sophisticated agricultural machinery as an example. It continues falling with the growth of agriculture, and demand is satisfied with imported machinery.
"What hinders the implementation of the well worked out tasks supported by the legal base? These are not rhetorical questions. Industry Minister Korolenko, Agriculture Minister Prysiazhniuk, Economy Minister Prasolov and Finance Minister Kolobov are to answer to the government," the premier said, demanding reports at the next cabinet meetings.
He also ordered Deputy Prime Minister Oleksandr Vilkul and Regional Development, Construction, Housing and Utilities Economy Minister Hennadiy Temnyk to report on the situation in the construction sector, where output fell by 16%, in particular in the affordable housing programs, at the next cabinet meeting.
Azarov said that in retail trade, which is a leader in the pace of growth, the share of Ukrainian-made products in H1, 2013 fell to 58% from 60% year-over-year.
"Thus, domestic consumer demand is supported at a high level, but it's mainly importers that are making use of it, not Ukrainian companies. I want to ask the economic development and trade minister what are you looking at? Are you managing processes or just observing them? Where your proposals for the stimulation of trade with Ukrainian goods?" the prime minister said, criticizing officials. He demanded a report on the additional incentives required for the expansion of domestic consumer demand for Ukrainian products.
Summing up, Azarov expressed discontent at the rather slow pace of preparation and agreement of measures as a part of the realization of the state economy stimulation program for 2013-2014.
"I order First Deputy Prime Minister Arbuzov, jointly with the Economic Development and Trade Ministry and Finance Ministry, to ensure the preparation of separate reports and a discussion of measures for the practical launch of the three to five projects of the stimulation program that are to start in 2013 and be implemented in 2014," the premier said.
