Ukraine’s economy to resume growth in 2021 – NBU

These conclusions were reached during a meeting of representatives of the NBU, the Government and leading Ukrainian economists, the NBU press service reported on Facebook.

The panellists agreed that in 2021 the economy will enter a growth trajectory, while inflation will remain moderate. However, in their opinion, COVID-19 is likely to still have a depressive effect on investment activity and consumption. This will limit the pace of economic recovery.

In such conditions, close coordination of fiscal and monetary policies is an important prerequisite for a faster recovery from the crisis.

On July 23, the National Bank of Ukraine (NBU) downgraded its forecast for real gross domestic product (GDP) decline from 5% to 6% in 2020. Earlier, on July 21, Ukrainian Finance Minister Serhiy Marchenko, referring to the forecasts of the Ministry of Economic Development, Trade and Agriculture, said that the fall of the Ukrainian economy would be 4.8%. The International Monetary Fund predicts a drop in Ukraine’s GDP at 8.2% in 2020 amid an average annual inflation of 4.5%.

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