Weather and trade wars may have negative impact on Ukraine's economy - NBU

The National Bank reported that weather conditions and trade wars may have a negative impact on Ukraine's economy.

The NBU has said this, the Ukrainian News agency reports.

"A separate significant risk to inflation and economic development is more significant than currently estimated negative impact of weather conditions on this year's harvests. Also relevant are risks associated with potentially less favorable external conditions against the backdrop of increased geopolitical uncertainty and deglobalization. So far, trade and political confrontations have not had a significant impact on the Ukrainian economy and have even partially supported it due to lower oil prices. However, further aggravation of trade disputes between countries may significantly weaken the global economy, which will lead to a decrease in external demand and create threats to the rhythm of international financing," the NBU noted.

At the same time, the probability of a number of positive scenarios remains.

They are primarily associated with increased financial support from partners (in particular, through the use of the main amount of frozen russian assets) and the efforts of the international community to ensure a just and lasting peace for Ukraine.

Further acceleration of European integration processes and infrastructure reconstruction, including energy infrastructure, is also possible.

As the Ukrainian News agency earlier reported, the international rating agency S&P Global has downgraded the rating of Ukraine's bonds tied to GDP growth (GDP warrants) from "CC" to "D" (default).

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