The World Bank improves forecast for Ukraine’s GDP in 2021 to 3%

The World Bank revised upward its forecast for Ukraine’s economic growth in 2021 to 3%, while early October it estimated the prospects for recovery to be twice as modest — at 1.5%, according to Interfax-Ukraine.

“According to the January World Bank’s Global Economic Prospects, estimates of the fall of the Ukrainian economy in 2020 at 5.5% and its growth by 3.1% in 2021 remained at the same level”, reads the Credit Bureau’s post.

In general, the World Bank expects the global economy to expand 4% in 2021, assuming an initial COVID-19 vaccine rollout becomes widespread throughout the year.

As reported earlier, GMK Center has already analyzed the prospects for growth of Ukraine’s economy in 2021.

Thus, all forecasts for the upcoming year promise a significant improvement of macroeconomic conditions in Ukraine. At the same time, the range of yearly GDP growth prospects is rather broad, from +1,5% to +6%. The key financial partners of our country are not too optimistic about the economic prospects of Ukraine.

The National Bank expected a 6% contraction in Ukraine’s GDP in 2020. Yet, a 4.2% GDP growth is projected in 2021.

An aggregate contribution of the mining & metals sector to Ukraine’s GDP in 2019 was 12%, according to GMK Center estimations.