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Economy 2020-02-22T04:03:01+02:00
Ukrainian news
NBU Retains GDP Growth Forecast At 3.5% In 2020

NBU Retains GDP Growth Forecast At 3.5% In 2020

NBU, GDP, GDP growth, GDP forecast, economic growth

The National Bank of Ukraine (NBU) retained forecast of GDP growth at 3.5% in 2020.

The NBU has said this in a statement, Ukrainian News Agency reports.

"Economic growth will accelerate from 3.3% in 2019 to 3.5% in 2020, and in subsequent years will be about 4%," the statement reads.

The acceleration of economic growth will be facilitated by easing monetary policy.

High levels of private consumption and investment will remain the main engine of economic growth.

At the same time, the contribution of net exports to the GDP will continue to be negative due to the significant needs of the real sector of the economy in investment imports.

The deficit of the current account in 2020-2022 will continue to be within acceptable limits.

In 2019, the deficit narrowed to 0.7% of the GDP.

Significant contribution to its reduction was receiving by the Naftogaz of Ukraine national joint-stock company of compensation from the Russian Gazprom by decision of the Stockholm Arbitration.

However, even without taking these funds into account, the current account deficit narrowed due to a smaller deficit in foreign trade in goods, a steady increase in the export of services, and lower volumes of repatriation of dividends.

In 2020-2022, the current account deficit will fluctuate at the level of 3-4%.

The widening deficit will be associated, in particular, with high volumes of investment imports and a decrease in gas transit revenues.

At the same time, this will be compensated by more substantial capital inflows to the private sector as a result of an improvement of the investment climate.

As Ukrainian News Agency earlier reported, in October 2019, the NBU improved forecast of GDP growth for 2020 from 3.2% to 3.5%, and in 2021 - from 3.7% to 4%.

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