NBU revises downwards Ukraine's GDP growth assessment for Q2, 2017 to 1.5%

15:43, 14.07.2017 1 min read

The National Bank of Ukraine (NBU) has worsened the estimate of Ukraine's real GDP growth in the second quarter of 2017 compared to the same quarter of 2016 to 1.5% from 2.4%, according to a report on conducting credit and monetary policy in the first half of 2017.

"The seizure of enterprises in the temporarily uncontrolled territories of Donbas caused a reduction in potential GDP. In addition, economic activity was affected by disruption of production ties due to a halt in trade with these areas," the National Bank said.

At the same time, it said investments, supported by improved business expectations, were growing at a high pace, despite the negative impact of no trade with the uncontrolled territories of Donbas.

"The influence of private consumption also increased, which, however, was moderate, despite a rapid growth in wages (in nominal and real terms)," the NBU added.

According to its updated forecast, the GDP forecast for the third quarter of this year was downgraded from 1.8% to 1.5%, but for the fourth one it was improved from 0.7% to 1.1%.