REUTERS
The major factors constraining the growth this year will be the tight monetary policy needed to reduce inflation, as well as restrained fiscal policy due to significant repayments on external debt.
The National Bank of Ukraine (NBU) says the country's economic growth in 2019 will temporarily slow to 2.5%, but will accelerate again in 2020–2021 due to gradual liberalization of monetary policy and more active investment amid a reduction in political uncertainty.
The major factors constraining the growth this year will be the tight monetary policy needed to reduce inflation to the medium-term target at 5% plus/minus 1 pp, as well as restrained fiscal policy due to significant repayments on external debt, the regulator said on its website on March 22.
Read alsoGrowth of Ukraine's real GDP in 2018 accelerates to 3.3%, seven-year high
At the same time, as the case last year, domestic consumer and investment demands will remain major drivers of GDP growth.
The NBU says that the data published by the State Statistics Service on accelerating the growth of Ukraine's real GDP in 2018 to 3.3% corresponds to the regulator's estimate.
In terms of economic activities, the agriculture sector made the largest contribution to GDP growth last year as a result of a record yield of grain crops and oilseeds, as well as the trade and services sectors due to steady consumer demand.
In addition, the construction and financial sectors also grew at a high rate. Moreover, energy and extractive industries resumed their growth on the background of the low comparison base of 2017.
At the same time, indicators of transport and processing industries have weakened due to logistical problems and repairs at metallurgical plants.
It is also reported that the updated forecast will be made public in the NBU inflation report for April.
As UNIAN reported earlier, the growth of Ukraine's real gross domestic product in 2018 accelerated to 3.3%, a seven-year-high, from 2.5% in 2017. Ukraine's GDP growth has been accelerating for the third year in a row.
In general, last year nominal GDP amounted to UAH 3.599 trillion (US$132 billion), which was UAH 84,190 ($3,088) per capita.
Ukraine's Economic Development Ministry estimates the country's GDP growth in 2018 at 3.2%.
Ukrainian President Petro Poroshenko says the country's real GDP in 2018 grew by 3.4%.
The Cabinet of Ministers of Ukraine projected Ukraine's GDP growth in 2019 at 3%, the National Bank at 2.5%, the International Monetary Fund at 2.7%, and the World Bank at 2.9%.
According to the consensus forecast compiled by UNIAN on the basis of experts' estimates, Ukraine's economic growth will slow to 2.8% in 2019.