News State macroeconomics 06 April 2021
The mining & metals sector contributed 5.2% of Ukraine’s GDP last year
The share of mining & metals companies in Ukraine’s GDP reached $15.2 billion, or 10.6%, in 2019. That figure includes both direct and indirect impact.
These data were presented in the study report Contribution of the mining & metals sector to Ukraine’s economy in 2019–2020 prepared by GMK Center analysts.
Analysts estimated that the gross contribution of the mining & metals sector includes the part of GDP generated by producers themselves (5.2%), related industries (4.4%) and consumer costs of the workers (1.1%).
In 2019, the overall contribution of the mining & metals sector went down a bit compared to the previous year (12%). That was caused by the crisis in the global steel industry in 2019 and reduction of production in the mining & metals sector in Ukraine.
The 2019 figures resulted from the delayed processing and publishing of statistics by the State Statistics Service of Ukraine.
As reported earlier, the State Statistics Service estimated a 4% drop in Ukraine’s real GDP in 2020 compared to the previous year. Last year, Ukraine’s GDP shrank following a four-year growth.
GMK Center’s analysis showed that the prospects for Ukraine’s economic growth in 2021 are estimated at 3–5% on average. At the end of March, the World Bank improved forecast for Ukraine’s GDP in 2021 to 3.8%.