GDP Prices

The deficit of foreign trade in May reached an unprecedented $ 8.8 billion and grew by sravnekniyu with last year at 135% of GDP deficit of 12.5%. If growth rates continue – by the end of the year foreign trade deficit will reach $ 20-25 billion, GDP growth fell to 6.3% (last year was 7.8%, respectively, and 7.9%). These facts show a decline in real incomes and purchasing power. Third, The Cabinet of Ministers of Ukraine decreased by more than half the cost of housing construction by eliminating some taxes and fees. This was reported by Ukrainian Prime Minister Yulia Tymoshenko. All of the above points in civilized market economy are bound to lead to a collapse in property prices. What is happening now in most countries.

Of the approximately two hundred, only 13 countries prices are rising. All countries – developed. In all the others – first the prices rose wildly and give returns to investors, then just as quickly fell (to the level of ‘economically justified’ – that is, construction costs +20-30%). However, in Ukraine expect a significant decline Despite all the prerequisites is not necessary. The fact that all major construction business in Ukraine belongs to the clans of oligarchs, they are all in cahoots with each other and government agencies in order to obtain super from the building, sometimes up to 300-400% per annum. Naturally, in the loss of such a profitable enterprise, none of them are not interested. Most likely prices will remain roughly the same, or slightly slow or stop the growth.

Reduce them will not be allowed, as falling house prices leads to a systemic crisis in the banking sector. And it is very dangerous for the economy. Such a scenario is not advantageous to anyone. We predict, due to lack of demand and financial series of bankruptcies of small and medium-sized construction and real estate companies, as well as strengthening the financial pressure on people from the business and the oligarchs. Big business is more profitable to simple suspend the pace of construction and released capital temporarily, until the crisis and alignment with world prices, to move to its other fields of activity.