​The state debt and the government-backed debt in relation to the GDP went down from 80.9% of the GDP in 2016 to 71.8% of the GDP in 2017

The State Statistics Agency has published the final statistical data about the GDP in 2017. According to these data, the pace of the GDP growth increased remarkably. Contrary to the preliminary forecast, the GDP growth in 2017 was equal to 2.5%.

The relation of the state debt and the government-backed debt to the GDP went down compared to the previous year for the first time since 2011 (from 80.9% in the end of 2016 to 71.8% in the end of 2017).

This means that this balance is incrementally getting closer to the optimal correlation between the state debt, government-backed debt and the GDP, which is equal to 60%.

“We can observe that this figure went down for the first time since 2011 and is now moving towards the “safe” figure of 60%. The key factors contributing to this include the low budget deficit and, accordingly, a lower demand for new loans”, said Yuriy Butsa, Deputy Minister of Finance in charge for European integration.

Such results were achieved due to the new approaches implemented in the budget planning. They include clear mid-term targeting and budget regulations including the deficit of the state budget.

The positive changes in the correlation between the said debts and the GDP also result from the new approaches in public debt management including active operations with the public debt implemented by the Ministry of Finance which are aimed to reduce the share of debts nominated in hard currency and to make the schedule of debt payments more stable.