Meanwhile, Ukraine's real sector continued to demonstrate impressive performance in November despite the political uncertainties. Real GDP grew by 12.4% year-over-year (yoy). This is one of the best GDP growth rates among all transition economies. Broad-based economic growth was supported by impressive export performance (43.3% yoy growth in ten months) and booming domestic demand (income growth reached 24% yoy). Unexpectedly, industrial performance improved significantly during the politically turbulent November following a deceleration in pre-election months. Industrial production accelerated to 11.3% yoy growth in November from 6.4% yoy in October. The outlook for Ukraine's economic development remains positive in 2004, although fiscal performance and inflationary pressures raise
These are economic reasons why Ukraine is a good candidate for business and for investment. The problems of corruption and rule of law have been reasons to go slow. But those problems will be addressed by the new regime.
One quibble I have with the report is their view of the Supreme Court ruling. They say it didn't resolve the crisis. But I think it did resolve the crisis. It didn't resolve all the issues that caused people to take to the streets, but there was a crisis before they ruled because of so much uncertainty around. That was a crisis and probably the crisis of the revolution. If the court had not stepped in and imposed some certainty back onto the situation, there would have been confrontation. It created a basis for going forward where there hadn't been any before. Before that there had been "what do we do now" in the air. That was not a good thing.
But after the ruling, the CEC set the date for the election and seemed to have every intention of holding it. It was like a valve releasing the pressure and you could feel it. There were other things to do for sure and the fact that the Rada did not pass the revisions when first presented was a blow, but the election was still on. There was some certainty where there had been none before.
So the Supreme Court ruling didn't solve all the problems but it solved a major one and established an environment in which the other problems could be worked out. And it preserved stability.