Ukraine’s GDP grew to 2.1% in 7M

The industry shows growth for the fifth month in a row

In January–July 2021, the Ministry of Economy of Ukraine recorded a growth in Ukraine’s GDP rate at 2.1%, according to a macroeconomic review for July posted on the website of the Ministry.

“In January–July 2021, the aggregate production index rose by 1.3% and GDP by 2.1%”, reported the Ministry.

In January–June 2021, the aggregate production index rose by 1.6%. In January–July 2020, it declined by 6.6%.

According to the Ministry of Economy, an increase in GDP in 7M 2021 was due to the growth of industry, agriculture, transport and construction. In July, industry showed growth for the fifth month in a row. The growth was 0.2% against 1.1% in June 2021 .

Agricultural production in July increased by 9.2% against a 16% hike in June 2021, caused by the peak of the harvest season.

The Ministry of Economy expects that the main risks for the projected growth of Ukraine’s GDP in 2021 are frequency, duration and severity of new lockdown restrictions. Another risk is worsening of the situation in the global markets.

As reported earlier, the Ministry of Economy expected a 4.1% growth in Ukraine’s GDP in 2021. Nevertheless, the growth of the Ukrainian economy may slow down to 3.7% in 2022.

GMK Center’s analysis showed that the prospects for Ukraine’s economic growth in 2021 are estimated at 3–5% on average.

As reported earlier, S&P Global forecasted a 4% growth in Ukraine’s GDP in 2021. The agency affirmed Ukraine’s rating, B/B (stable outlook). On the other hand, Fitch expected a 4.1% economic growth in Ukraine in 2021. JP Morgan projected a 5.6% increase in Ukraine’s GDP in 2021.