PM: Ukraine needs new economic model for GDP to reach $1T in 10 years

PM: Ukraine needs new economic model for GDP to reach $1T in 10 years

Prime Minister Denys Shmyhal believes that Ukraine needs a new economic model.

"Ukraine needs a new economic model. Without this, it will be impossible to achieve the set and very ambitious goal – Ukraine's GDP should total $1 trillion in 10 years," Shmyhal said at the Cabinet’s meeting, Ukrinform reports.

According to him, the Ministry of Economy will play the main role in the fulfillment of this goal and therefore will present a clear and comprehensive strategy for the new economy of Ukraine. Private capital and entrepreneurs will take the lead in this economic model.

In turn, the Head of Government added, the role of the state in the economy will be drastically reduced. Privatization will continue and corporate governance reform will be completed, radical deregulation will be carried out, and all business services will be digitized.

"As we said, the focus should not be just on the GDP figure. New jobs and new businesses are the indicators by which the work will be evaluated. One of the key elements of the economic philosophy is the principle that Ukraine bets on recycling. Not the export of raw materials, but the export of finished products. Inclusion of Ukraine in European and global production chains," Shmyhal noted.

According to him, the second benchmark is new honest relations between the state and society. This is what is defined in the priorities of the government as an effective digital state, a new social policy, and the development of human capital.

"All services for people and businesses are online. Compact state apparatus. Creation of the Government Center. In the social sphere, this is a pension reform, which should provide for the creation of a funded pension system. This is a new social contract. We are forming a person's own capacity instead of dependence on the state. Social services and payments should be as targeted as possible," Shmyhal said.

As reported, on June 28, President Volodymyr Zelensky emphasized that Ukraine needs a doctrine that will answer fundamental questions about the future of the state.

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