Page 52 - UKRRptMay19

unchanged: 6.3% this year and 5% in each of 2020-2021.
At the same time, the NBU slightly raised its forecast for nominal GDP: for the current year from UAH3.965 trillion to UAH3.97 trillion, for 2020 from UAH4.336 trillion to UAH4.342 trillion.
According to its updated estimates, underlying inflation in 2020 will be 3.7% but not 3.6% as the regulator expected earlier, but the forecast for underlying inflation for 2019 and 2021 was kept at the same level of 5% and 3.7% respectively.
As reported, Ukraine's GDP growth in 2018 accelerated to 3.3%, while inflation slowed down to 9.8%.
8.3 Stock market
8.3.1 Equity market dynamics
Ukraine cuts state company dividend rate to 50%. Ukraine’s Cabinet ruled on Apr. 24 to set the 2019 dividend distribution rate for state-controlled joint stock companies at 50% of their 2018 profit. Exceptions were made for Oschadbank (OSCHAD), Ukrainian Railway (RAILUA) and Ukrhydroenergo, an operator of hydroelectric stations, which are required to pay 30% dividends. At the same session, the Cabinet issued a resolution ordering entities with the status of state enterprises to pay 90% of their 2018 profits to the state budget this year. Last year, the Cabinet demanded 75% profit distribution from both state-controlled joint stock companies and state enterprises. This year, the Economy Ministry expects that the government will receive UAH2.1bn in dividends from joint stock companies (except Naftogaz) and UAH15.4bn from state enterprises. Based on the latest business plan of Naftogaz it is going to
52 UKRAINE Country Report May 2019 www.intellinews.com