First 100 Days of the Sviridenko Government: Stabilization, but No Strategic Breakthrough
In the first hundred days of the government led by Yulia Sviridenko, a range of positive developments have taken place, which are crucial for stabilizing Ukraine’s economy.
Together with the National Bank and international partners, the team managed to maintain relative stability of the hryvnia and control inflation, marking key achievements amid a crisis.
They successfully met the main budget targets without disrupting social and defense payments, fostering trust among both domestic and foreign creditors.
External financial aid, amounting to over $13 billion from the EU, US, and IMF, bolsters the country’s fiscal stability.
The government also launched new initiatives to develop the defense industry, including clustering policies and increasing the number of private defense manufacturers, along with establishing joint weapon production with NATO countries.
Digital solutions like the ‘Impulse’ system for accounting mobilization resources were implemented to improve transparency and efficiency.
On the international front, donor confidence remains intact, and memoranda were signed to guarantee investor protections within Ukraine Facility.
However, economist Bohdan Danylyshyn points out that the first 100 days reveal unresolved issues and risks that could hinder long-term stability and growth.
Notably, Ukraine lacks a comprehensive economic strategy that considers mobilization priorities, a balance between military and civilian production, and import substitution programs.
Policy measures are mostly tactical, lacking a centralized strategic coordination.
The economy heavily relies on external aid—up to 70% of fiscal expenditures are financed through international support—posing risks if aid is delayed or reduced.
A plan for replacing external assistance with domestic revenues through borrowing, investment, and taxation has not been developed.
Reforms in judiciary, tax, and customs sectors remain stalled, deterring investment.
Budget spending policies prioritize social benefits over production stimulation; grant programs for small business are often populist and do not generate substantial employment.
Management coordination between ministries is weak, with no clear vertical authority or decision-making process.
Although the initial phase of government work has demonstrated stability, significant reforms and a strategic approach are required for economic growth and recovery.