Ukraine’s economy is recovering after the crisis – NBU

Экономика Украины восстанавливается после кризиса - НБУ

The Ukrainian economy out of the crisis caused by the quarantine that was imposed because of the epidemic of the coronavirus.

This is stated in the report of the National Bank of Ukraine (NBU) at a meeting of the monetary policy Committee (ILC).

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According to the regulator, business expectations in trade and industry have almost reached dekorativnogo level.

In particular, in June continued a gradual recovery of retail trade and slowed the decline in consumer imports.

In the ICU predict a decline of the fall of Ukraine’s GDP to 8%

However, as noted in the NBU, given the high level of uncertainty about the further development of the situation with the spread of the coronavirus, citizens and businesses likely will continue to be quite restrained in their consumption and investment decisions.

In the Commission believe that monetary policy needs to remain expansionary to support the recovery of the economy.

At the same time, members of the Commission noticed that in June, there was a reversal of the inflationary trend.

“Key factors that had held back the growth of prices, primarily changed its influence on proinflationary. The gradual recovery of the global economy led to the growth of energy demand and, consequently, the cost of fuel would increase the cost of a significant amount of other goods and services in the economy of Ukraine. Along with the recovery of economic activities of the disinflationary pressure from depressed consumer demand will also gradually dry up,” – said in the message.

In the ICU predict a decline of the fall of Ukraine’s GDP to 8%

The national Bank said that inflation will continue to accelerate.

“It will closer to 5% at the end of 2020, and in 2021 may rise closer to the upper boundary of the target range of 5% +/- 1 percentage point”, – reported in the NBU.

In turn, the international monetary Fund (IMF) explained his prediction of the fall of Ukraine’s GDP of 8.2%.

According to analysts of IMF, this is due to the small amount of savings of the population and limited fiscal support for the economy.