REUTERS
Most types of economic activities in May showed a slowdown in the decline rate amid the quarantine easing.
Ukraine's Ministry for Development of Economy, Trade and Agriculture says the country's gross domestic product (GDP) in January-May 2020 decreased by 5.9%.
"According to the results of January-May 2020, the consolidated index of the production of goods and services fell by 7.3% (against a 6.7% decline in January-April). Accordingly, the economy ministry estimated the reduction in GDP at 5.9%," reads the economic activity review for January-May 2020 published on the ministry's website.
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The ministry added most types of economic activities in May showed a slowdown in the decline rate amid the quarantine easing. In particular, this refers to the reopening of most shopping malls, other establishments providing trade and consumer services, food markets, as well as partial resumption of passenger transportation by road (urban, commuter, intraregional and international services) and the subway.
According to the ministry, this is reflected in the improvement of the Business Expectations Index (BEI) compared to the previous month.
"At the same time, the negative impact of the global spread of COVID-19 (due to a temporary decline in overall economic activity in the world, investment pauses, including from foreign investors) and the constraints of previous periods have hampered the development of most types of economic activities," the report said.
As UNIAN reported, in April 2020, the Verkhovna Rada, Ukraine's parliament, introduced the so-called "anti-crisis" changes to the national budget for 2020. In particular, the budget deficit almost tripled, to UAH 298.4 billion (US$11.07 billion), or 7.5% of GDP.
The updated budget is based on such forecasts as a 3.9% decline in GDP (it was previously expected to grow by 3.7%) and 9.4% unemployment (instead of 8.1%). The average annual forex rate is set at UAH 29.5 (against UAH 27) per U.S. dollar and inflation is expected to accelerate to 8.7%.
The International Monetary Fund worsened its forecast for a decline in Ukraine's economy in 2020 to 8.2% from 7.7%, which was projected in April, adding that Ukraine's economic recovery after the coronavirus-related decline to the pre-crisis indicators might last until 2023-2024.