National Bank worsened the GDP growth forecast

Нацбанк ухудшил прогноз роста ВВП

The NBU has kept the growth of the economy in 2018 and 2019

The Outlook revision resulted from the deterioration of the results of economic activity.

The national Bank of Ukraine has lowered the forecast of growth in real gross domestic product (GDP) in 2017 to 1.6% from 1.9%, keeping inflation at 9.1%. This was reported on the website of the NBU.

“This year, growth will slow to 1.6%. The Outlook revision resulted from the deterioration of the economic activity in the 1st half of the year, particularly in the service sector and in connection with the revision of the grain harvest. Will continue low performance of the industries most associated with the rupture of industrial relations with the CIS (mining and metallurgical complex, energy, transport)”, – stated in the message.

The estimates of economic growth for 2018 and 2019 saved unchanged at 3.2% and 4%, respectively.

“This will contribute to the easing of monetary and fiscal policies that stimulate consumer demand. Economic growth will support the improvement of the investment attractiveness of the economy and export growth amid improving trading conditions and high yields. However, the recovery in domestic consumer and investment demand will be met by imported products”, – explained in the message.

Unchanged remains also the inflation forecasts for the two subsequent years: 6% in 2018 5% in 2019. At the same time the expectations of the NBU core inflation have improved: the forecast for 2017 is reduced to 6.1% from 6.5%, in 2018 – to 3.9% from 4.3%, for 2019 – to 2.8% from 3.7%.

As reported Корреспондент.netpreviously, the Cabinet lowered its estimate of GDP growth from 3% to 1.8%. The corresponding decree was adopted at the government meeting.

Earlier, the state statistics Committee reported that Ukraine’s GDP in the first quarter of this year increased compared to the same period last year by 2.4%.