S&P Global Ratings revises downward outlook for GDP decline

S&P Global Ratings has revised downward its May outlook for a decline in Ukraine's economy in 2020 by 0.5 percentage points (pp), to 6%.

The country's economy is expected to start recovering by 4% in 2021 and by 3% in 2022, according to the agency's press service.

Real investment in the Ukrainian economy may shrink by 15% in 2020, whereas it may grow by 10% in 2021 and by 6% in 2022, the report said.

Read alsoS&P affirms Ukraine rating at 'B' with stable outlookIn addition, the unemployment rate in Ukraine this year is expected to rise by 1.9 pp from that reported in 2019, to 10.5%. However, the rate may drop to 10% in 2021 and to 9% in 2022.

Ukraine's public debt in 2020, as well as the next three years may exceed 60% of GDP against 48.7% in 2019.

Previous outlook

• S&P Global Ratings affirmed its 'B' long- and short-term foreign and local currency sovereign credit ratings on Ukraine, with stable outlook.
• In May 2020, S&P Global Ratings predicted a 5.5% decline in Ukraine's economy in 2020 with its subsequent recovery by 5% in 2021 and a further rise by 3% in 2022.