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Ukraine's GDP to decrease by 6.5% in 2020, - Fitch

Source : 112 Ukraine

At the same time, analysts believe that in the next two years, GDP will grow
19:28, 6 September 2020

Open source

According to the forecast of the Fitch rating agency, Ukraine's GDP by the end of this year will decrease by 6.5%. This is reported by Finbalance.

At the same time, the agency predicts an increase in this indicator in 2021 and 2022 by 3.8% and 3.5%, respectively. However, given the ambiguous situation around the coronavirus pandemic and its consequences, these indicators may change significantly.

Fitch expects inflation in Ukraine to approach the National Bank's 5% target by the end of 2020 (it was 2.4% in July) due to higher energy and food prices and a rebound in domestic demand. In 2021, inflation may average 5.3%, and in 2022 - 5.7%.

Related: The 100: How ranking of the most influential Ukrainians changed over last year?

The agency's analysts believe that after a record decrease in the National Bank's discount rate to 6%, it will no longer be possible to reduce it, which is affected by inflation and an increase in the minimum wage in 2021.

The rating agency also expects that the state budget deficit of Ukraine in 2020 will be 6.5% of GDP, in 2021 - 5.4% of GDP, in 2022 - 4.2% of GDP. At the same time, the total public debt by the end of this year will grow to 57.4% of GDP (65.1% including guaranteed debt) from 44.4% (50.4% including guaranteed) in 2019.

Fitch analysts also believe that in 2022-2023 the national debt will stabilize at 60%, and further our country will reduce this figure.

Earlier EBRD experts predicted a fall in Ukraine's GDP by 4.5% in 2020.

Related: Ukraine's Economy Ministry improves its inflation forecast for 2020

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