Economy Ministry predicts 6% GDP growth in second quarter

The Ministry of Economic Development, Trade and Agriculture predicts Ukraine’s GDP growth in the second quarter of this year of 6%.

This is stated in the documents of the ministry, reports the Ukrainian news agency.

In the first quarter of 2021, Ukraine continued to experience negative GDP dynamics due to the introduction of a lockdown in January, as well as the introduction of “red” quarantine zones in some regions in March.

It should be noted that the dynamics of the GDP in the first quarter correspond to the trends previously predicted by the ministry.

“In the second quarter, although the economic recovery continues to be influenced by the pandemic, given last year’s low comparison base and immunization processes both globally and nationally, it entered in a positive trend, “the ministry said.

Thus, according to the preliminary estimates of the Ministry of the Economy for five months, GDP growth was estimated at 0.7%, which in turn is slightly lower than previously forecast.

The ministry believes that this is due to an underestimation of the influence of the cost factor, which has formed under the pressure of an upward trend in prices in the world market, as well as a “delay »Unpredictable in the development of construction and agriculture.

“According to calculations by the Ministry of the Economy, GDP growth in the second quarter of 2021 will be around 6%,” said the regulator.

The Economy Ministry expects construction and agriculture to make up for the delay during the summer months.

The acceleration of growth will also be facilitated by the price environment in external commodity markets and will become an essential support for the activities of national exporters.

As a result, by the end of 2021, GDP growth will reach the projected level of 4.1%.

As the Ukrainian News Agency previously reported, the European Bank for Reconstruction and Development projects Ukraine‘s GDP growth of 3.5% in 2021 and 2022.

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