23 October 2019, Wednesday, 1:38
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The Way Ukraine Becomes More ‘Stable’ Financially Than Belarus

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The Way Ukraine Becomes More ‘Stable’ Financially Than Belarus
PHOTO: GETTY IMAGES

A curious economic nuance.

All viewers of state television channels have long been accustomed to the fact that Belarus is an island of stability.

And Ukraine is an economically disadvantaged corrupt country, leading a war. That is why thousands of Ukrainians cross the border (sometimes with weapons, according to Aliaksandr Lukashenka), in search of a better life, Solidarity writes.

The latest financial news from the neighboring country, if not refuted, then questioned this long-established associative series.

Firstly, the average wage in Ukraine recently jumped to a historic high of $ 430 in the equivalent. Taking into account the habits of many Ukrainian employers to pay salaries in “envelopes”, this amount is already quite comparable with ours “500 bucks each”.

Secondly, the Ukrainian hryvnia became one of the few currencies in the world that rose sharply against the dollar. Over the past year, the currency of the neighboring country has strengthened by almost 13% against the dollar. For comparison: the Belarusian ruble weakened by 7.3%.

The third nuance is the most important, although difficult to understand. The other day, the reputable agency Fitch published a new credit rating, according to which Ukraine was assigned the value “B” with a positive outlook.

At the same time, Belarus has the same rating: “B” value, but there is a slight nuance. The outlook on it is not positive, but stable. This means that, according to international experts, no improvement in the financial situation in the country can be expected in the near future.

So it turns out that Ukraine has caught up with Belarus in terms of financial stability and is starting to overtake Belarus, although for several years in a row it has been in a lagging position.

The saddest thing is that the neighboring country has such a rating, being on the verge of intensive economic reforms, promised by new president Volodymyr Zelensky. And it is likely that the financial well-being of Ukraine will only improve in the coming years - step by step.

In Belarus, no special reforms have been planned, especially on the eve of parliamentary and presidential elections. In such a situation, the economy of the country may well turn from an “island of stability” into a shallow swamp with stagnant water.