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Economy 2019-03-15T05:02:50+02:00
Ukrainian news
NBU: Ukraine's GDP Grows 2% In Q3

NBU: Ukraine's GDP Grows 2% In Q3

The National Bank of Ukraine says Ukraine's economy grew by 2% in the third quarter of 2017.

This is said in the October inflation report of the NBU, Ukrainian News Agency reports.

According to the Ukrainian central bank, the growth in investment and private consumption continued in the third quarter.

"Industrial output remained close to last year's levels: a production increase in the machinery, chemical, and woodworking industries largely offset a drop in output in metals and mining and energy production. However, metallurgy and energy sector have adapted to the new conditions and shifted to new sources of raw materials faster than expected. An improvement in the external price environment was another important factor that supported the real sector. Lower crop yields this year and a further decline in animal breeding restrained growth in the agriculture sector," reads the report.

Overall, the central bank has upgraded its estimate for real GDP growth in the third quarter to about 2% year over year from its previous forecast.

The NBU expects the economic growth in 2017 to be 2.2%, in line with last year's growth rate.

"The upward revision was prompted by stronger performance across most industries, a pick-up in private consumption amid higher real wage growth, and strong corporate investment activity. An output decline in some industrial sectors owing to limited access to the goods produced by companies located in the non-government controlled areas (NCGA) has restrained economic growth this year. Net exports will make a notable negative contribution to the change in real GDP this year given the need to import more energy resources, including coal," reads the report.

The central bank believes the economic growth will accelerate in 2018 and 2019 to 3.2% and 3.5% respectively.

"Private consumption will continue to be the main driver of economic growth over the forecast horizon thanks to higher wages and pensions, improved consumer sentiment, and a pick-up in consumer lending. Meanwhile, investment growth will slow slightly due to higher production costs and a gradual accumulation of fixed capital," reads the report.

The NBU expects companies in the farming sector, mining, metals, construction, and other sectors to be the most active in terms of investment activity.

As Ukrainian News Agency earlier reported, the National Bank of Ukraine has improved the GDP growth forecast for 2017 from 1.6% to 2.2% and worsened the inflation forecast from 9.1% to 12.2%.

The National Bank of Ukraine has estimated growth of the gross domestic product (GDP) to be at 2.3% in the second quarter of 2017. In the first quarter of 2017, Ukraine's GDP grew by 2.5%.

In July 2017, the National Bank of Ukraine retained the inflation forecast of 9.1% for 2017 and of 6% for 2018.

In July, the central bank worsened the GDP growth forecast for 2017 from 1.8% to 1.6%.

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