The Ministry of Economy expects a 3.9% decline in Ukraine’s GDP in 2020

The Ministry revised its initial growth forecast of 3.7%

The Ministry for Development of Economy, Trade and Agriculture of Ukraine decreased its forecast for the country’s GDP in 2020 to 3.9%.

This was announced by the Ministry of Economy itself.

The reason is a recession in the global economy. Along with other countries, Ukraine is taking large-scale measures to combat the coronavirus.

The Ministry of Economy expects the economy to rebound in the second half of 2020 and accelerate in the years to come. The main reasons are a high global demand for domestic agricultural and industrial products, a stable banking system, lower prices for imported energy products, continued structural reforms in cooperation with international partners.

Inflation will temporarily increase to 8.7% in 2020. By the next year, this figure will return to 5%.

As GMK Center reported earlier, in Q4 2019, Ukraine’s real GDP growth slowed down to 1.5% compared to the same period of the previous year. Real GDP grew by 0.1%.

In 2019, Ukraine’s GDP dropped to 3.3% from 3.4% in 2018. Industrial production in Ukraine decreased by 1.8% against 2018.