Ukraine sees GDP drop by 2.8% in Jan-Feb – Economy ministry

Ukraine's Ministry for Development of Economy, Trade and Agriculture says the country's gross domestic product (GDP) in January-February 2021 dropped by 2.8%.

That is according to an economic activity overview posted on the ministry's website.

Read alsoGDP slide at 4% one of world's lightest in 2020 – Ukraine economy minister

"Thus, in January-February 2021, the consolidated production index declined by 4.2%. Almost all types of economic activity, except for domestic trade, affected the dynamics of the index. As a result, the decline in GDP is estimated at 2.8%," the document said.

The easing of anti-epidemic restrictions with the transition to adaptive quarantine requirements in February after the January lockdown contributed to a partial recovery of certain economic entities' production activity.

"However, ups and downs of the [COVID-19] curve, producers' exhaustion over permanent quarantine measures, and unpredictability related to the introduction of new restrictions continue to restrain the development of key types of economic activity," the report said.

Background

• Ukraine's GDP in January 2021 dropped by 2.6-2.8%, according to the Ministry for Development of Economy, Trade and Agriculture.

Economic forecasts

• The World Bank expects a moderate recovery in Ukraine's economy in 2021 with GDP growth projected at 3.8%.
• The International Monetary Fund, after a 4% decline in the gross domestic product of Ukraine in 2020, predicted its growth in 2021 by 4%, to be followed by a slowdown to 3.4% in 2022.
• On April 8, 2021, Oleh Ustenko, an adviser to the President of Ukraine on economic issues, said on a TV channel that the country's GDP growth in 2021 would exceed 4%.