Page 16 - UKRRptAug21

3.0 Macro Economy
3.1 Macroeconomic overview
Ukraine’s GDP grew by 6% y/y in the second quarter, the Economy Ministry reported July 20. The increase comes after five straight quarters of decline due to the coronavirus pandemic. In a Reuters poll, economists predicted an 8% y/y increase. The Ministry said: “In the second quarter of 2021 economic recovery entered a positive trend, although it continues to be affected by the pandemic.” The government forecasts 4.1% growth for all of 2021, cancelling out last year’s decline of 4%.
4.0 Real Economy 4.1 Industrial production
Ukraine’s industrial output rose 1.1% year on year in June, slowing from 5.4% y/y growth in May, the State Statistics Service reported on July 22. Seasonally adjusted output declined 0.7% month on month in June.
In 1H21, industrial output increased 2.1% y/y (vs. a 7.6% y/y decline in 1H20).
Manufacturing output increased 2.0% y/y in June (after an 8.0% y/y increase in May). In particular, output in metallurgy slowed to 7.0% y/y growth (from a 12.2% y/y jump in May), and machinery output advanced 17.6% y/y (vs. 28.5% y/y in May). At the same time, food production dropped 16.3% y/y and chemicals declined 7.7% y/y.
16 UKRAINE Country Report August 2021 www.intellinews.com