Ukrainian economy preserves its positive growth and is in line with forecasts
The economy of Ukraine preserves its positive growth and is in compliance with earlier issued macroeconomic forecasts. Thus, according to the operational data of the State Statistics Service of Ukraine (SSSU), the country’s GDP rose by 2.4% in the second quarter of 2017, compared with the same period in 2016 and by 0.6% compared with the 1st quarter of 2017.
The key factors for this positive development are the reform of the economy, the improvement of business expectations and the growth of consumer activity with an increase in wages. In addition, a positive impact was provided by the external market performance, namely the growth of prices on commodity markets, in particular metal, iron and grain as well as a high level of construction activity at industrial and infrastructure facilities.
Commenting on the statistical data of the SSSU, Deputy Head of the Strategic Group of Advisers under the Cabinet of Ministers Pavlo Kukhta stressed that the growth of indicators by 2.4% in the second quarter of 2017, compared with the same period in 2016 is in line with forecasts. Economic recovery after a deep decline in 2014-2015 continues. He also pointed out that indicators of investment demand are showing a tendency to increase. Thereby, the volume of construction products increased by 26.3%, machinery-producing industry indicators increased by 10.7% and investment imports, inter alia imports of machinery, equipment, vehicles and professional equipment grew by 36%. Pavlo Kukhta emphasized that the most important hurdle for economic growth in Ukraine is a low level of investment, thereby increased investments are a good signal and if this trend continues Ukrainian economy will switch to the structurally higher growth rates that are needed in order to take a worthy place among economically developed countries.
Apart from that, specialists of the Department of economic strategy and macroeconomic forecasting of the Ministry of Economic Development and Trade of Ukraine predict the economic upturn will continue with GDP growth being 1.8% to 2% on the outcomes of the year.