The recovery of the Ukrainian economy will continue in 2011, while the pace of growth remains twice slower than before the crisis, reads a World Bank report.

According to the bank's forecasts, in 2011 Ukraine will increase its GDP by only 4%, whereas before the crisis, this growth rate was 8%. If Ukraine does not carry out structural economic reforms, the impact of the next crisis may be even worse, says World Bank Director for Ukraine, Belarus and Moldova Martin Raiser.

World Bank Senior Economist for Ukraine Pablo Saavedra recalled that in 2012 the world would face the food crisis, which will lead to a rise in prices for agricultural products. According to him, the cancellation by Ukraine of export restrictions would increase the pace of GDP growth in the medium term.

"Ukraine is one of the largest exporters, in particular, of wheat. Therefore, under conditions a rise in food prices, Ukraine will have economic benefits. However, if the economic policy is the same as in 2010 when the export of grain was restricted, Ukraine will run the risk of losing potential benefits, but it can receive profit if the trade policy is proper," Saavedra said.

At the same time, economic expert Viktor Lysytsky said that Ukraine's agricultural sector, which has not been reformed for decades, in the absence of restrictions on exports of agricultural products, would not become an impetus to the development of the national economy.

Director of the Institute for Economic Research and Policy Consulting Ihor Burakovsky recalled that Ukrainian agricultural products could find demand not only in the food market.

"The whole world needs our food and agricultural products. On the other hand, taking into account the resumption of oil prices and, obviously, the prospects linked to the need to protect the environment and the settlement of the fuel deficit, Ukraine could become a significant player on the market for the production of biofuel components. Clearly, this is a definite chance," he said.

UKRINFORM