Ukraine has to cope with three economic crises at once, with the current government being unable to face such a challenge and improve the domestic situation, the German magazine wrote.
First, there are direct consequences of the war, which has brought production in eastern Ukraine to a standstill.
Second, there was the termination of economic relations with its most important trading partner, Russia.
And third, the government is struggling against a severe structural crisis in the Ukrainian economy, smoldering for years.
The poor economic situation has dramatic consequences for the population and the government. Petro Poroshenko, who made a fortune with his confectionery production, is not able to prevent the crash of his country’s economy, the magazine wrote.
According to the latest data, economic output in Ukraine plummeted by 17.6 percent in the first quarter 2015. The last proper economic growth was registered in 2011.
The situation is especially hard for Ukrainian residents. They are suffering an unprecedented increase of gas and heating costs as well as severe hryvnia devaluation.
Though currency devaluation may sometimes have positive impact, namely, making exports cheaper and the country more attractive for investors, in Ukraine it is definitely not the case.
Investments from abroad decreased due to military conflict and the unstable domestic situation, while exports dramatically fell as trade relations with Russia were broken and industrial production, especially in the eastern regions, has been severely affected by the war, Spiegel wrote.
