National Bank: Ukraine’s real GDP may fall by over 5% in 2020

The National Bank of Ukraine (NBU) is expecting an over 5% drop in Ukraine’s real GDP in 2020, according to the regulator’s website.

“At the year-end, the fall will probably be deeper than expected. While the lockdown is gradually being eased since mid-May, economic activity and employment are recovering, just as expected,” reads the NBU’s message.

The NBU is expecting a yet deeper drop of real GDP in Q2 2020, following a 1.3% contraction in Q1, the reason being the lockdown restrictions throughout the entire quarter.

As reported earlier, the International Monetary Fund (IMF) projects a 7.7% decline in Ukraine’s GDP in 2020. Economic recovery will start in 2021, with a 3.6% growth.

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