Economy 2023-04-15T05:41:51+03:00
Ukrainian news
Economy Ministry Expecting 6% GDP Growth In Q2

Economy Ministry Expecting 6% GDP Growth In Q2

Economy Ministry, GDP, GDP growth, GDP forecast, Ministry of the Development of Economy, Trade and Agriculture

The Ministry of the Development of Economy, Trade and Agriculture predicts growth of Ukraine's GDP in the second quarter of this year by 6%.

This is stated in the materials of the Ministry, Ukrainian News Agency reports.

In the first quarter of 2021, Ukraine continued to experience negative GDP dynamics due to the introduction of a lockdown in January, as well as due to the introduction of "red" quarantine zones in some regions in March.

It is noted that the dynamics of GDP in the first quarter corresponds to the previously predicted trends of the Ministry.

"In the second quarter, although the economic recovery continues to be under the influence of the pandemic, given the low comparison base of last year and the vaccination processes both globally and domestically, it has entered a positive trend," the Ministry said.

So, according to the preliminary estimates of the Ministry of Economy for five months, GDP growth was estimated at 0.7%, which in turn is slightly lower than previously predicted.

The Ministry believes that this is due to an underestimation of the influence of the cost factor, which was formed as a result of pressure from an upward price trend in the world market, as well as an unpredictable "lag" in the development of construction and agriculture.

"According to the calculations of the Ministry of Economy, GDP growth in the second quarter of 2021 will be about 6%," the regulator said.

The Ministry of Economy expects that construction and agriculture will compensate for the lag in the summer months.

The acceleration of growth will also be facilitated by the pricing environment in external commodity markets and will become a key support for the activities of domestic exporters.

As a result, by the end of 2021, GDP growth will reach the projected level of 4.1%.

As Ukrainian News Agency earlier reported, the European Bank for Reconstruction and Development predicts Ukraine's GDP growth by 3.5% in 2021 and 2022.