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Economy 2019-11-15T04:02:58+02:00
Ukrainian news
NBU Raises 2019 GDP Growth Forecast From 3% To 3.5%, Keeps Inflation Forecast Unchanged At 6.3%

NBU Raises 2019 GDP Growth Forecast From 3% To 3.5%, Keeps Inflation Forecast Unchanged At 6.3%

NBU, GDP, inflation

The National Bank of Ukraine has raised its forecast for the growth of gross domestic product in Ukraine in 2019 from 3% to 3.5% and kept its inflation forecast unchanged at 6.3% in its latest macroeconomic forecast.

The National Bank of Ukraine announced this in a statement, the Ukrainian News Agency reports.

The National Bank of Ukraine also raised its GDP growth forecast for 2020 from 3.2% to 3.5% and the growth forecast for 2021 from 3.7% to 4%.

In addition, the National Bank of Ukraine raised its forecast for nominal GDP to UAH 4,020 billion in 2019, UAH 4,420 billion in 2020, and UAH 4,850 billion in 2021.

The inflation rate is expected to drop to 6.3% at the end of this year, enter the target range at the beginning of next year, and reach the medium-term target of 5% at the end of 2020.

The core inflation rate is expected to slow down more than previously predicted by the end of 2019 and fuel prices are expected to remain lower than last year because of a “solid hryvnia exchange rate.”

The National Bank of Ukraine expects the inflation rate to further slow to 5% in the period of 2020-2021 and this year because of sufficiently tight monetary conditions.

Even with the gradual reduction of the National Bank of Ukraine’s discount rate, its real value will remain high because of increased inflationary expectations.

As Ukrainian News Agency earlier reported, the National Bank of Ukraine raised its forecast for GDP growth from 2.5% to 3% in 2019 and from 2.9% to 3.2% in 2020 in its macroeconomic forecast in July this year.

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