Ukraine’s GDP falls by 5.9% between January-May 2020

Ukraine’s gross domestic product (GDP) decreased by 5.9% between January-May 2020, according to the latest Economic Activity Report released by the Ministry for Development of Economy, Trade and Agriculture.

In particular, the reduction of ISP (consolidated index of goods and services production by main economic activities) totalled 7.3% in January-May 2020  (a 6.7% decline in January-April 2020), and respectively, the Economy Ministry estimates the decrease in GDP at 5.9% (the fall in GDP was 1.3% (p.p.) in Q1 2020, according to the updated data of the State Statistics Service), which currently corresponds with previously published projections of the Economy Ministry (‘minus’ 1.2%),” reads the report.

According to the NBU, the index of business activity expectations grew to 37 points in May 2020 from 29.9 points in April 2020, although a value of less than 50 points indicates a rather pessimistic business mood.

As reported by Ukrinform, the Action Program of the Cabinet of Ministers of Ukraine projects that the Ukrainian economy may decline by 4-8% compared to 2019 over the coronavirus pandemic in 2020.

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