PM Shmyhal forecasts GDP drop by no more than 5% by year-end

Ukrainian Prime Minister Denys Shmyhal says the domestic economy this year may decline by no more than 5% of gross domestic product (GDP).

Read alsoDefense Budget 2021: Finance minister speaks of record spending targetHe made the comment during the event, titled "Ukraine and the World in 2021," organized by the Ukrainian weekly Novoye Vremya, as reported by an UNAN correspondent on December 18.

"Today we clearly understand that we'll lose no more than 5% of GDP this year over the crisis. We realize how we'll be living next year. We forecast 4.6% economic growth and moderate inflation in 2021. The National Bank projects it at 5% + 1%, while the Economy Ministry believes that [the inflation] within the range of 7%-7.3% will be acceptable for economic recovery," he said.

Decline in GDP

The decline in Ukraine's GDP in the 10 months of 2020 slowed to 5.2%, from 5.5% reported in January-September 2020.

National budget 2021: Background

• At a meeting on November 26, the Cabinet of Ministers approved the draft national budget for 2021. The document provides for revenue at UAH 1.092 trillion (US$39.3 billion), while spending is set at UAH 1.328 trillion (US$47.7 billion).
• At the same time, the Finance Ministry announced it had successfully finalized discussions with the International Monetary Fund (IMF) on benchmarks of the national budget draft for 2021, which was one of major prerequisites for starting the first review of the IMF Stand-by Arrangement for Ukraine.
• On December 15, 2020, the Verkhovna Rada, Ukraine's parliament, passed a draft law on the 2021 national budget.
• On the same day, the parliament backed a resolution on the Verkhovna Rada's budget for 2021.