Growth slows in the Ukraine.

The Ukraine is having its difficulties recently.

In mid-July, the British Broadcasting Corporation (BBC) said that the country's reputation as a fast-growing economy was tarnished because of investor concerns about the quality of the Ukraine's investment climate. The new government has failed to make good on its privatization promises, and other reforms. In addition, questions have been raised about the questionable sale of some of the former Soviet Republic's assets.

The BBC pointed out that, in addition to reforms, the new government had promised to advance the country's application to become a member of the World Trade Organization (WTO). Legislation to promote membership languished in the Ukraine legislature, and investors took this as a sign that the Ukraine was not prepared to comply with WTO rules, some of which provide a level of safety for investors.

In addition, Interfax, the Russian new agency, reported that the country's consumers were being hit with higher prices - from 3 percent to 12 percent, depending on which government agency appears most trustworthy.

Also, the Washington Post reported on July 14, 2005 that the Ukraine's economy was slowing down. The BBC said that GDP growth in June 2005 was 1.1 percent compared with 19.1 percent a year earlier. The current president's response was that the growth statistics published by the former government are suspect. There may be something to this. Average annual growth over the past decade, using International Monetary Fund (IMF) statistics was 3.5 percent. To be fair, the IMF statistics show the Ukraine's GDP contracted at an average annual rate of - 1.8 percent for the first five years of the decade, then grew at an 8.5 percent average annual rate for the second five years.