Economy 2022-11-15T05:03:06+02:00
Ukrainian news
EBRD Retains Ukraine’s GDP Growth Outlook At 3.5% For 2021 And 2022

EBRD Retains Ukraine’s GDP Growth Outlook At 3.5% For 2021 And 2022

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Ukraine, EBRD, GDP, GDP outlook

The European Bank for Reconstruction and Development (EBRD) has retained its outlook for Ukraine’s gross domestic product growth at 3.5% for 2021 and 2022.

That follows from the respective statement by the European Bank for Reconstruction and Development (EBRD), Ukrainian News Agency reports.

In compliance with the Bank’s outlook, the GDP of the country will grow by 3.5% both in 2021 and 2022.

In 2021, the growth will be facilitated by the big harvest of grain crops and normalization of business activity, however, slow rates of reform implementation and Covid-19 vaccination remain major risks for the outlook.

Long-time lockdown at the beginning of 2021 led to a fall of Ukraine's GDP by 2.2% in the first quarter (quarter over quarter), and in the second quarter of 2021, it grew by 5.7%.

Export growth ensured a surplus in the current account, which led to an increase in the volume of foreign currency and hryvnia consolidation.

In 2021, inflation rose and reached 11% in September against the background of growth in food and energy carriers’ prices.

Therefore, the National Bank of Ukraine had to enhance the monetary policy and this year it raised the discount rate four times, after which it grew from 6% at the beginning of the year to 8.5% in September.

As Ukrainian News Agency earlier reported, in October, the Cabinet of Ministers worsened the GDP growth outlook for 2021 from 4% to 3.5%.

The NBU worsened the GDP growth outlook from 3.8% to 3.1% and retained the inflation outlook at 9.6% for 2021.

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