NBU worsens outlook for GDP growth

The National Bank has downgraded its economic growth forecast for 2021 from 3.8% to 3.1%.

That’s according to National Bank Governor Kyrylo Shevchenko who spoke at a Kyiv briefing, explaining the move, an Ukrinform correspondent reports.

"The impact of the pandemic was longer and more significant, which, together with the implications of a sharp gas price hike, led to weaker performance of our economy in the first half of the year. In view of this, the National Bank revised its economic growth forecast from 3.8% to 3.1%," said Shevchenko.

He noted that the unfavorable situation on the energy market, together with the consequences of logistical issues across the world, will limit the output of the Ukrainian industry and restrain pace of economic recovery next year.

"Given this, the National Bank has slightly lowered its forecast for next year’s GDP growth from 4% to 3.8%," Shevchenko said.

However, in 2023 the economy is expected to grow by 4%, said the NBU head.

As reported, according to the calculations provided by the Ministry of Economy, in January - August 2021, the gross domestic product (GDP) grew by 2.9%.

In 2022, the government expects Ukraine's GDP to grow by about 4%, while another powerful wave of the pandemic could hinder such progress.

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