REUTERS
Construction enterprises and the service sector (transport, retail, education, health care, and the banking sector) ensured the country's positive GDP dynamics.
The Ministry of Economic Development and Trade of Ukraine says the GDP growth in Ukraine in January-February 2019 was estimated at 1.2%.
Over the period under review, the country's real sector of economy was affected by decline in industry and commerce, caused by current and overhaul repairs of production facilities at iron and steel enterprises and power generating companies, as well as the lack of package of new orders for certain machine-building enterprises at the beginning of the year.
At the same time, the activity of construction enterprises and the service sector (transport, retail, education, health care, and the banking sector) ensured positive GDP dynamics.
In addition, over the two months of the year, there was an increase in the demand for construction products (construction of engineering facilities grew by 36.9%, while that of non-residential buildings – by 18.6%).
The ministry also noted the active development of poultry industry since poultry farming grew by 9.2%. The pig breeding industry has improved as well due to recovery of pig production, which rose by 6.4% (after a long period of decline) against the background of a reduction of African swine fever (ASF) outbreaks and improvement in the herd gene pool due to growth in live pigs imports.
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In addition, the state-run gas transport system operator Ukrtransgaz boosted transit of Russian natural gas by 15%, while freight transportation by road intensified by 31.3%, the ministry said.
Favorable price situation in certain world commodity markets also contributed to the GDP growth. According to the World Bank, over the two months of 2019, world prices of fertilizers increased by 12.9%, those of wheat – by 11.6%, iron ore – by 6.9%, and maize – by 5.3%.
As UNIAN reported, the State Statistics Service estimated Ukraine's GDP growth in the fourth quarter (Q4) of 2018 at 3.4%, in Q3 at 2.8%, in Q2 2018 at 3.8%, and in Q1 2018 at 3.1%.
The service has not released its report for the entire year 2018. However, the National Bank estimates the GDP growth at 3.3%, while the Economic Development Ministry – 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 based on the experts' estimates, Ukraine's economic growth in 2019 will slow down to 2.8%.