Ukraine’s economy grew by 2019 3.3%

Экономика Украины выросла в 2019 году на 3,3%

The growth of gross domestic product (GDP) of Ukraine in 2019 slowed from 3.4% in 2018 to 3.3%, at the same time changed the drivers of this growth, said the Ministry of economy on Tuesday.

“Significantly slowed the growth of the combined production index of goods and services by key economic activities (SIP) – to 1.6% overall for the year 2019, and in the last months of the year even observed his fall. But the high domestic demand generated strong performance in construction, trade and some branches of the service sector”, – said the Agency “Review of economic activity 2019”.

SIP slowing from 3.6% in 2018, according to the Ministry of economy, was primarily due to the difficult situation in industry, where production dropped by 1.8% after three years of growth (2018 – 1.6%).

Also, despite another record grain harvest has slowed significantly agriculture – to 1.1% from 8% a year earlier.

According to the survey, trade growth in the past year also declined from 4.6% to 3.1%, while in construction, they accelerated from 8.5% to 20%.

In accordance with the document, in the fourth quarter of 2019 GDP growth slowed to 2.1% from 4.1% in the third quarter, 4.7 percent in the second and 2.6% in the first.

Ministry of economy indicates that GDP estimate made taking into account the operational information of the SSC in turnover of wholesale and retail trade, and volume in freight and passenger traffic.

“In 2020 will continue the reform in all spheres of the economy, modernization of industrial complex, the active renewal of the infrastructure, but the effect of the factors, influencing the development of the economy in 2019, already present in previous periods of structural imbalances accumulated problems will somewhat restrain the growth of the economy as a whole”, – notes the Agency, without specifying the forecast.

As reported, the national Bank of Ukraine last week also downgraded the assessment of the growth of Ukraine’s GDP in 2019, up from 3.5% to 3.3% due to the slowdown in the fourth quarter to 2.2%.

At the same time, the NBU has kept the forecast of real GDP growth for the years 2020-2021 3.5% and 4%, respectively, expecting growth of 4% in 2022.