Decline in Ukraine economy slows to 6.2% – economy ministry

Ukraine's Ministry for Development of Economy, Trade and Agriculture says the decline in Ukraine's gross domestic product (GDP) in the seven months of 2020 slowed to 6.2%, from 6.5% reported in the first half of 2020 (H1).

"In July 2020, against the background of continued adaptation to activities amid the quarantine, almost all economic sectors showed a slowdown in the decline pace, or growth (in particular, the retail market segment). This indicates that the gradual recovery continues, and most economic sectors are gradually returning to normal operation after the lockdown (especially in April)," reads an economic activity review for January-July 2020 published on the ministry's website.

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It is noted that certain industrial sectors, transport, trade, and agriculture have shown a slowdown in the decline pace, while the Business Expectations Index (BEI) has improved from June.

"As a result, and taking into account a fairly high statistical base of comparison last year, in January-July 2020, the reduction of the consolidated production index slowed down slightly to 7.3% (against 7.7% in H1 2020). Accordingly, the reduction in GDP is estimated by the Economy Ministry at 6.2%," the report said.

Background

The Ministry for Development of Economy, Trade and Agriculture estimated the decline in Ukraine's GDP in H1 2020 at 6.5%, including 11% in the second quarter of the year.