The NBU explained, whereby GDP grew by more than 3%

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Decreased the amount of imports and exports.

In the first three months of 2018, the growth of Ukraine’s economy amounted to 3.1%. Compared to the previous quarter GDP growth was 0.9% seasonally-adjusted.

Such data of the State statistics service of Ukraine.

The national Bank noted that the actual rate of growth of real GDP was above its forecast of 2.3%.

“And in 2017, the main engine of GDP growth was domestic demand, both consumer and investment. Third consecutive quarter of accelerated investment growth. In particular, the growth rate of gross fixed capital formation increased to 17% yoy. This contributed to the improvement of business expectations of enterprises and further improvement in their financial results. Unlike last year, investment growth was much less associated with the building construction, the growth rate of gross value added which is rapidly slowed down (to 2.2% yoy). But the high pace continued growth of investment in industry, particularly mining, metallurgical industry, engineering and supply of electricity, steam, water and air conditioning, as well as trade, transport and telecommunications”, – noted in the NBU.

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Continued increase in consumer demand due to the significant growth in real wages, increases in pensions in the previous periods and the improvement in consumer sentiment of the population.

“However, growth in final consumption expenditure of households slowed down compared to the previous quarter (up 5.6% y/y), which can be primarily explained by lower rates of real wage growth (10.7 per cent yoy in the first quarter of 2018 compared to about 20.0% yoy in the fourth quarter of 2017) due to higher comparison base. But consumer spending sector General public administration has decreased (by 1.4% yoy), reflecting restrained fiscal policy enough in the early 2018,” notes the national Bank.

At the same time by 9.9% reduction in the volume of exports of goods and services.

“The decline in exports was principally due to the decrease in physical volumes of supplies of grains and oilseeds, reflecting the lower harvest last year, as well as reducing the volume of transit of energy resources”, – said the NBU.

Also in the first quarter declined significantly in imports (5.4% yoy) is primarily due to the reduction of energy imports.

“As a result of the negative contribution of net exports to economic growth decreased (to 2.3 VP), and that led to acceleration of real GDP growth compared with the indicators of the IV quarter of 2017, as well as the deviation of actual data from the assessment of the NBU,” – said the regulator.

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The national Bank also announced its forecasts for the second quarter. He “expects a moderate acceleration of growth of economy of Ukraine. The preservation of the business at a high level indicates a steady growth of investment activity. Further growth of consumer demand of households will increase income of the population (including at the expense of military pensions, wages and remittances). Also generally remains a favorable situation on external markets. So, despite some correction in certain periods, the world price of significant commodities of Ukrainian exports (steel, iron ore, grains) remain at a high level, and the countries-main trading partners of Ukraine in General are rising faster than expected”.

Recall, according to the national Bank forecasts, by 2018 Ukraine’s economy should grow by 3.4%. The updated forecast published in July.

Videoroulette can build a strong economy provided a dialogue with society.

The Prime Minister appreciated the chance during a meeting with representatives of the local self-government. The key to success, according to the Prime Minister, – the dialogue with society. And if officials will provide people, primarily: education, medicine, infrastructure, energy efficiency and culture, they have a chance to re-obtain a mandate in the election.

TSN. 19:30

19 Jun, 20:04

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Letter to the editor

The national Bank of Ukraine

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