Page 22 - bne IntelliNews Country Report: Ukraine Dec17

Donbas region will decrease the output of some industries.
Then, in July, the NBU revised its 2017 forecast downwards even further to 1.6%. The move was attributed to the poor economic performance in the first half of the year, primarily in services, and the revised crop yields assessments. Industries most susceptible to the severance of production ties with the rebel-held Donbas territories - the mining and metals sector, energy and transport – were predicted to underperform.
Growth remains uneven across economic sectors – agriculture and industrial production are drifting around zero, while construction (+23.8% y/y in 9M17) and retail trade (+8.6%) are recovering robustly.
Adverse weather conditions earlier this year affected the agriculture sector and total output is expected slightly below last year’s record.
Industry is being held back by several factors , including the lingering effects of the suspension of trade with the non-controlled territories in eastern Ukraine and the lower supply of agricultural inputs for the food industry.
3.2 Macro outlook
The European Bank for Reconstruction and Development (EBRD) has confirmed the forecast for the growth of Ukraine's GDP in 2017 at 2% and at 3% in 2018, according to a press release of the bank. This represents no change on its forecast earlier this year in May.
The bank also said consumer price inflation in the country is slowing, but as of September 2017 it was still at a high level - 16.4% compared with last year.
22 UKRAINE Country Report December 2017 www.intellinews.com