Business outlook: Ukraine

The Ukrainian economy faces high inflation and shrinking economic growth in 1994. Western sales are estimated at $1 billion and stagnating. Gross domestic product fell by 20% from Jan to end-Aug 1994, but private and service sector activity is often unrecorded. Inflation will fall to some 2,000% in 1994 from some 3,000% in 1993, and criteria for an International Monetary Fund loan will not be met, with economic policy ineffectual and confused. Privatization is slow, banking services are poor, and infrastructure provision is inadequate.