NBU downgrades GDP growth forecast

According to an Ukrinform correspondent, NBU Governor Kyrylo Shevchenko said this at a briefing on Thursday, April 15.

"Due to economic losses caused by the tightening and extension of quarantine restrictions, we have worsened our forecast for GDP growth in 2021 from 4.2% to 3.8%," Shevchenko said.

He noted that Ukraine's GDP declined slightly in the first quarter of 2021. First, it was affected by the introduction of new COVID-19-related restrictions and this led to the suppression of business activity. Second, the effect of last year's lower harvests affected agriculture, the food industry and freight turnover. Third, economic recovery has hampered increased competition in individual foreign markets and the expansion of trade restrictions by Russia. In addition, bad weather in January-February worsened construction and transport figures.

"Starting from the second quarter, the economy will return to its steady growth. Consumer demand will remain the main driver. Amid global economic recovery and further progress in the fight against the pandemic, investment demand will slowly increase," he said.

op