IMF admitted that its advice was wrong for Ukraine

Fund auditors report clearly admitted: advice to governments of European countries about budget cuts and tax increases do not lead to any improvement. "The call for fiscal consolidation as one sure was premature. The recovery in most developed countries was much slower, and in many European countries - short" - admitted fund.

Many countries in 2008-2009 to combat the economic crisis announced multibillion measures to stimulate domestic demand and increased government spending to fight unemployment. In 2010 began the restoration, but at this point the IMF urged governments to cut spending, raise taxes and cut the budget deficit.

The European Commission has once again revised its outlook for economic recovery this year. According to current expectations, this year the euro zone economy will grow by only 1.1%, although only six months ago, the projected growth was 1.7%. Worst of all, on the brink of recession was Germany, which was the biggest promoter of budget austerity measures that are recommended by the IMF.

For Ukraine's economy the recommendations of the IMF led to the realization of all the negative consequences that the previous Cabinet was afraid of. The hryvnia has lost more than 40% of its value, some tariffs are already almost doubled, inflation for the year will amount to 20%, and the economy will lose 7 to 9% and will be reduced the following year.