Official rates of banking metals from national bank as of July 30
One troy ounce=31.10 grams
The National Bank of Ukraine (NBU) in the updated Inflation Report published on the website again worsened the estimate of the growth of Ukraine’s gross domestic product (GDP) in the second quarter of 2021 (hereinafter compared to the same period in 2020), to 7.5% from 8.7% in April and from 11.3% in the January report.
The negative impact of last year’s low harvest on exports, the food industry and agriculture (in particular, livestock farming due to a decrease in profitability as a result of higher prices for feed) remained. The negative conditions influenced agriculture and a later start of the harvesting (one week later), the National Bank said, explaining the deterioration of the assessment.
The NBU also revised its forecast for GDP dynamics in the second half of this year. If in April he expected economic growth in the third and fourth quarters, respectively, by 4.2% and 3.6%, now – by 3.6% and 5.8%.
“The key risks to the macroeconomic forecast are the imposition of stricter quarantine measures in Ukraine and globally, and a longer and more pronounced than expected surge in global inflation,” the National Bank said.
As reported, in general, the NBU confirmed the forecast for GDP growth for 2021 at 3.8% and for 2022-2023 at 4%.
According to the report, the central bank expects the economy to expand by 6.7% in the first and second quarters of next year, slowing to 2.8% in the third and to 1% in the fourth quarters.
The volume of construction work performed in Ukraine in January-June 2021 increased by 0.2% compared to the same period in 2020.
According to the State Statistics Service, in January-June, the volume of construction work completed amounted to UAH 76.8 billion.
According to the statistics department, in June 2021 the seasonally adjusted index of construction products amounted to 116.4% compared to the previous month, the one adjusted for the effect of calendar days compared to June 2020 – 121%.
The service reported that in June 2021 from June a year earlier, an increase in the volume of construction work was observed in all segments of construction: in residential – by 24.1%, non-residential – by 1.2%, engineering – by 29.3%.
The share of new construction in the total volume of completed construction work was 36.8%, repairs – 35.7%, reconstruction and technical re-equipment – 27.5%.
An increase in the volume of construction work in January-June 2021 compared to January-June 2020 was recorded in Ternopil (by 52%, to UAH 1.4 billion), Rivne (by 24.8%, to UAH 1.2 billion), Volyn (by 24.6%, to UAH 1 billion), Cherkasy (by 17.9%, to UAH 994.8 million), Ivano-Frankivsk (by 14.3%, to UAH 1.4 billion), Khmelnytsky (by 12.7%, to UAH 2 billion), Odesa (by 8.6%, to UAH 8.8 billion), Donetsk (by 8%, to UAH 3 billion), Kharkiv (by 10.3%, to UAH 7.3 billion), Zhytomyr (by 3.7%, to UAH 801.4 million), Kyiv (by 2.4%, to UAH 5.3 billion), Lviv (by 0.5%, to UAH 4.8 billion) regions and Kyiv (by 1.7%, to UAH 18.1 billion).
In other regions, there was a decrease in construction volumes. The most significant drop was shown by Chernivtsi (by 38.7%) and Kirovohrad (by 34.1%) regions.
Ukraine International Airlines (UIA) is launching seasonal flights on the Kyiv-Nice-Kyiv route from August 8, the restoration of air traffic became possible due to the mitigation of epidemiological requirements on the part of France.
The press service of UIA reported that flights to Nice will be operated every Tuesday and Sunday: departure from Kyiv will be at 09:30, arrival in Nice at 11:35; back – departure at 12:35, arrival at 16:30.
Flights will last until September 29.
In turn, SkyUp Airlines will launch flights on this route from August 19.
As noted on the airline’s Facebook page, they will be carried out on Thursdays and Sundays.
In addition, from August 20, SkyUp will launch flights on the Kyiv-Paris/Beauvais-Kyiv route. They will run on Mondays, Wednesdays and Fridays.
President of Ukraine Volodymyr Zelensky has signed a law restoring the value added tax (VAT) rate for part of agricultural products from 14% to 20%, the specified tax rate reduction was in effect from March 1, 2021 to July 30, 2021.
According to data on the website of the Verkhovna Rada, the law on amendments to the Tax Code of Ukraine regarding the rate of value added tax in taxation of transactions for the supply of certain types of agricultural products under No. 1600-IX (bill No. 5425-d) was signed on July 29.
According to the data on the website of the President’s Office, the law is intended to reduce the risks from higher food prices, as well as to create equal conditions for VAT taxation for agricultural producers and processing industry enterprises. The document comes into force on July 30 and applies to tax periods starting from August 2021.
As reported, on July 1, 2021, the parliament returned the VAT rate on livestock products, rye, oats, flax seeds and sugar beets to 20% from the previously reduced one 14%.
The 20% rate will again apply to products with economic activity codes 0102 (live cattle), 0103 (live pigs), 0104 10 (live sheep), 0401 (in terms of whole milk), 1002 (rye), 1004 (oats), 1204 00 (flax seeds), 1207 (seeds and fruits of other oilseeds), 1212 91 (sugar beets).
At the same time, with respect to other grains and oilseeds, the VAT rate is 14%. In particular, the matter concerns goods with codes 1001 (wheat and meslin), 1003 (barley), 1005 (corn), 1201 (soybeans), 1205 (rape seeds) and 1206 00 (sunflower seeds).
Earlier, a number of associations and food industry enterprises asked the president to veto bill No. 3656, adopted by the Verkhovna Rada in December 2020 and reducing the VAT rate on some agricultural raw materials to 14%, since its action entails an increase in the cost of food products by 3-4% and a decrease in the profitability of processing enterprises by 50-70%.
On Tuesday, August 3, at 10.00, the press center of the Interfax-Ukraine news agency will host a press conference entitled “Importance of city’s long-term strategy in urbanization era: Odesa example.” Participants include futurologist, founder of the Center for Economic Recovery Andriy Dlihach, Odesa entrepreneur, founder of Odesa Business Club Dmytro Kavzachynsky, Head of the Association of Sustainable Development Leaders Olena Zubareva (8/5a Reitarska Street). The broadcast will be available on the YouTube channel of Interfax-Ukraine. Due to quarantine restrictions, the number of seats in the press center is limited. Admission of journalists requires registration on the spot.
