GDP decline slows to 5.8% – economy ministry

Ukraine's Ministry for Development of Economy, Trade and Agriculture says decline in the country's gross domestic product (GDP) in the first eight months (January-August) of 2020 slowed to 5.8% after a 6.2% slump in January-July.

That is according to an economic activity review for January-August 2020 published on the ministry's website.

"In August 2020, against the background of ongoing adaptation to operations amid quarantine easing, almost all economic activities slowed their decline pace down, while some even showed a growth (in particular, the retail market segment and construction industry)," the report said.

The ministry added that all types of industrial activities, construction, transport, trade, and agriculture improved their dynamics, while the Business Expectations Index (BEI) increased against July. This led to a slowdown in the decline of the consolidated production index to 6.5% against 7.3% in January-July.

Read alsoEconomy Ministry says Ukraine-UK agreement to facilitate domestic goods exportsAmong the key factors that had a positive impact on the economy, the ministry noted the favorable situation on global markets for ferrous metals and metal ores in August, maintained relatively high purchasing power, and adaptation of businesses to working amid the lockdown. At the same time, the ministry noted low investment activity in the domestic economy.

Background

The Ministry for Development of Economy, Trade and Agriculture estimated the decline in Ukraine's gross domestic product in the first half of 2020 (H1) at 6.5%, including 11% in the second quarter of the year.

The decline in Ukraine's GDP in the seven months of 2020 slowed to 6.2%, from 6.5% reported in H1 2020.