EAVEX Weekly

December 18, 2017

Kyiv-listed equities finished generally higher last week, spurred by a traditional holiday season rally rather than any fresh fundamental drivers. Although Ukraine’s economic outlook has brightened somewhat with an expectation of 3% GDP growth in 2018, such growth would still be too slow for a country where the average salary is below USD 300 per month. The next year will likely be a transition into election season for President Poroshenko, reducing the chances that serious reforms will be implemented. This assumption has a confirmation in the most recent statement by the IMF, which does not plan to send its monitoring mission to Kyiv for the fourth review of the USD 17.5bn support program, as Ukraine has not complied with the program requirements.