Economy 2024-05-15T06:59:41+03:00
Ukrainian news
EBRD Expecting Ukraine’s GDP Growth Of 3.5% In 2021 And 2022

EBRD Expecting Ukraine’s GDP Growth Of 3.5% In 2021 And 2022

Ukraine, EBRD, GDP

The European Bank for Reconstruction and Development (EBRD) is expecting Ukraine’s gross domestic product to grow by 3.5% in 2021 and 2022.

That follows from a statement by the EBRD, Ukrainian News Agency reports.

"The country’s GDP is expected to grow by 3.5% annually in 2021 and 2022. The major risks for the implementation of the outlook are connected to slow reform and vaccination rates," says the statement.

The EBRD notes that a fall in the foreign demand combined with the impact of several lockdowns on the domestic demand conditioned the GDP fall of 4% in 2020.

EBRD's Lead Regional Economist Dimitar Bogov noted that despite a GDP fall of 2.2% in 2021 over 2020 due to continued lockdown, gradual return to the growth is being detected in the second quarter thanks to the increase in prices for commodities.

The volume of industrial production in the first four months of 2021 increased by 1.5% compared to last year, while the volume of exports and imports rose in the first quarter by 12% and 11%, respectively.

Remittances grew between January and April 2021 by 7% over 2020.

Inflation accelerated in 2021 amid rising world food prices and reached 9.5% in May 2021, due to which the National Bank raised the discount rate twice, most recently to 7.5% in April 2021.

As Ukrainian News Agency earlier reported, in the first quarter of 2021, the real annual GDP, according to the latest data, decreased by 2.2% over 2020 to UAH 1,008.562 billion.

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