Reading practice

Ex. 15. a) Read the article below quickly to find out what economic indicators are men­tioned in the text.

b) Compare the situation in 1992 with the present-day situation.

In 1992 the economic situation in Ukraine continued to be very difficult, owing to large macroeconomic imbalances and to the unavoidable difficulties arising in the initial stages of the transition to a market economy. Nevertheless, significant progress was achieved in implementing structural adjustment policies in some areas.

Real GDP and industrial production are estimated to have dropped by 19 percent in 1992. Oil extraction fell by 15 percent, while the output of natural gas remained unchanged; agricultural output fell by 8 percent. The fall in output reflected a number of factors, including the decline in demand associated with the drop in real incomes following the liberalization of prices in January 1992; the short-run effects of the economic transformation; the interruption of traditional trade links with the countries of the former Council for Mutual Economic Assistance (CMEA) and the states of the former Soviet Union; and cutbacks in investment and military spending.

Monthly inflation rates began to decline after the jump in prices associated with price liberalization in January 1992. However, this trend was reversed around midyear and between October 1992 and March 1993, monthly inflation rates were between 20 percent and 30 percent. Between the end of 1991 and end of 1992, consumer prices increased by over 2,300 percent. The acceleration of inflation after midyear reflected a substantial loosening of financial policies. Real wages dropped sharply in connection with the liberalization of prices, but recovered somewhat in the course of the year and at year-end stood at 90 percent of their 1987 level. Registered unemployment remained low.

Vocabulary list

Англійський варіант	Російський варіант	Український варіант
macroeconomic imbalances	макроэкономические диспропорции	макроекономічні диспропорції
are estimated to have dropped	по предварительным подсчетам сократились	за попередніми підрахунками скоротилися
oil extraction	добыча нефти	здобич нафти
short-run	краткосрочный	Короткостроковий
Cutback	снижение, уменьшение, сокращение	зниження, зменшення, скорочення
Spending	Расходы	Витрати
Reverse	поворачиваться в противоположном направлении	повертатися в протилежному напрямі
Acceleration	ускорение	Прискорення
loosen	ослаблять	Послаблювати
recover	восстанавливаться	відновлюватися

с) Reread the article more carefully and complete the sentences given below, us­ing information from the article.

1. In 1992 ... situation ... difficult.

2. Large macroeconomic imbalances ... in the initial stages of ... economy.

3. .... progress was achieved in... policies.

4. Real GDP... by 19 percent in 1992.

5. ...fell by 8 per cent.

6. The fall in output... factors.

7. The decline in demand followed ....

8. Monthly ... rates ... in January 1992.

9. .... consumer prices ... 2,300 percent.

10. The acceleration of inflation ... policies.

11. Real wages ... of prices.

12. Registered ... low.

Ex. 16. a) Read the article below quickly to pick out the main economic indicators.

b) Say how they characterize the UK economy.