EBRD revises downward outlook for GDP decline

The European Bank for Reconstruction and Development (EBRD) has revised downward its May outlook for a decline in Ukraine's economy in 2020 from 4.5% to 5.5%.

That is according to the EBRD's September report available to UNIAN.

Read alsoS&P Global Ratings revises downward outlook for GDP declineThe EBRD also predicts that the Ukrainian economy will see a 3% growth as early as in 2021, instead of a 5% rise projected for the next year in May 2020.

The drop in external and internal demand for Ukrainian products over the coronavirus pandemic was the major reason for economic decline in the country, the report said.

At the same time, Ukraine was able to maintain macroeconomic stability thanks to its effective monetary policy and the IMF's financial assistance.

However, the Ukrainian economy still faces high risks, which reflect unclear prospects for further quarantine restrictions and uncertainty in fulfilling by the government of its obligations related to structural reforms.

GDP outlook: Background

• In May 2020, the European Bank for Reconstruction and Development said Ukraine's GDP in 2020 might fall by 4.5%, with further growth by 5% in 2021.
• The International Monetary Fund suggested GDP would grow 3% in 2020, while the World Bank said the growth would stand at 3.7%.