Government raises 2020 inflation forecast to 11.6%

The relevant government’s resolution as of March 29, 2020, No.253, has been posted on the Government portal.

According to the updated macroeconomic forecast, the government projects the unemployment rate to be 9.4%, the average monthly wage of employees (gross) – UAH 10,700, and the nominal wage considering inflation will decrease by 4.5% compared to the last year's indicator. The number of people engaged in economic activities, aged between 15 and 70, will total 16.33 million.

As Ukrinform reported, the Ministry for Development of Economy, Trade and Agriculture revised its GDP forecast for 2020. The fall by 3.9% is now expected compared to the 3.7% increase, as was projected before the global crisis.

The unemployment rate will reach 9.4% against the previously projected 8.1%, while the fall in real wages will reach 0.3%.

The average annual hryvnia exchange rate is estimated at UAH 29.5 per US dollar (compared to UAH 27 per US dollar projected in October 2019). The rise in consumer prices will only temporarily accelerate to 8.7% (compared to 5.5% in the previous forecast) and will return to the target 5% next year, the ministry said.

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