REUTERS
At the same time, as with other emerging markets, downside risks to the growth outlook have increase due to uncertainty of the impact of Covid-19 on global growth and commodity prices.
Fitch Ratings in its latest outlook expects Ukrainian economy to grow 3.5% in 2020 from 3.2% in 2019.
In 2021, it could grow 3.8%, supported by private consumption and investment.
Fitch considers that growth and investment prospects depend on the adequate and timely implementation of reforms to address constrains such as the rule of law, corruption, customs and taxation and law enforcement.
The revised version of the land market legislation will be positive for economic growth in the near term through increased consumption (as result of land sales) and expected increase in the demand for credit for the agricultural sector, Fitch believes.
At the same time, as with other emerging markets, downside risks to the growth outlook have increase due to uncertainty of the impact of COVID-19 on global growth and commodity prices.
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Fitch expects inflation to average 4.6% in 2020 and 5.3% in 2021, close to the forecast 4.9% and 5.0% 'B' medians.
As UNIAN reported earlier, Fitch affirmed Ukraine's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'B'. The Outlook is Positive.
The real GDP growth of Ukraine in the fourth quarter of 2019 amounted to 1.5% y-o-y, slowing down from 4.1% in the same measurement a quarter earlier.
The State Statistics Service is yet to release data on annual growth in general.
According to experts, in general, in 2019, the Ukrainian economy grew by 3.1%.