The investment bank Renaissance Capital said, Ukraine might not suffer to the extent it did when metals prices plunged during the global financial crisis three years ago.
Analysts Ms. Anastasia Golovach and Mr. Ivan Tchakarov said, “Assuming the worst case scenario of declining commodity prices, which are crucial for Ukraine, the country may be less sensitive to global cooling than in 2008-2009. Despite the panic in the global financial markets, steel, iron ore and coking coal prices have remained relatively stable.”
According to Renaissance Capital, “Metals and mining had helped drive Ukraine’s economy before the crisis. Recovery in the former Soviet republic is largely the result of increased real wages and a higher propensity to consume.”
The analysts wrote that, “We think salaries will continue to grow, particularly as the country is expecting parliamentary elections in October 2012”. (Bloomberg)