GDP growth to exceed 4% in 2021 – advisor to chief of president's office

The growth of the country's gross domestic product (GDP) in 2021 will exceed 4%, suggests Oleh Ustenko, an advisor to the Chief of the President's Office.

"Growth at 4% is the baseline forecast. But we expect the growth to be greater," the President's Office quoted Ustenko as saying.

According to Ustenko, the IMF forecast for Ukraine's GDP growth at 4% is lower than the figure laid down in the 2021 national budget.

"The national budget provides for the real growth within 4.2%-4.3%. Also, President Zelensky speaks of the need to reach a 5% growth per year since it's precisely such growth makes it possible to effectively fight poverty," he added.

The expert noted that this year's GDP growth in Ukraine is possible due to an increase in households' consumption following the rise in minimum and average wages.

Read alsoIMF publishes outlook for Ukraine economy until year-endThe lending resource will also become available, including via the Affordable Loans: 5%-7%-9% program, mortgage lending, and the lowering of the National Bank's key rate.

"In addition, investments, additional expenditures of the national budget, and an improvement in the global environment will have a positive effect on the economy," the expert summed up.

Background

The World Bank expects a moderate recovery of the Ukrainian economy in 2021 with a 3.8% GDP growth.