2021-07-30T13:45:00+03:00 Economy 2024-05-15T06:53:49+03:00

Ukrainian news

Ukrainian news

NBU Forecasts GDP Growth Of 3.8% In 2021 Due To Increase In Domestic And External Demand

NBU Forecasts GDP Growth Of 3.8% In 2021 Due To Increase In Domestic And External Demand

The National Bank of Ukraine (NBU) forecasts GDP growth of 3.8% in 2021 due to an increase in domestic and external demand.

This is stated in the NBU inflation report, Ukrainian News Agency reports.

"The economy will recover thanks to an increase in both domestic and external demand. In 2021, Ukraine's GDP will grow by 3.8%. The main driver will be private consumption, which will increase by 8%. This factor, together with favorable foreign trade conditions, will compensate for the - for the strengthening of quarantine in winter and spring and the effect of other temporary factors," the statement reads.

It is noted that the increase in vaccination will allow faster recovery of the services and passenger transportation sector, which has been most affected by quarantine.

Economic activity will also pick up on strong external demand.

"Favorable terms of trade will improve the financial condition of exporters and restore investment activity. In 2022-2023, the Ukrainian economy will grow by about 4% annually. In addition to high private consumption, this will be facilitated by significant demand for Ukrainian exports, as well as the revival of investment activities of enterprises thanks to the best financial results and increased lending," the National Bank said.

As Ukrainian News Agency earlier reported, the National Bank predicts unemployment at 9.1% by the end of 2021.