Real GDP in 2021-2025 (forecast)
Source: Open4Business.com.ua and experts.news
The German economy may enter recession in the first quarter of 2024, the Bundesbank said in its monthly report. According to the German central bank, the country’s GDP is likely to decline slightly again in January-March.
It contracted by 0.3% in quarterly terms in the fourth quarter of 2023, according to preliminary data from the German Federal Statistical Office (Destatis). The final data will be presented on Friday.
As negative factors for the German economy, the Bundesbank notes a significant decline in demand for industrial exports, the likely continued restraint of consumers in spending, increased uncertainty about climate policy, a decrease in order books in industry and construction, as well as strikes, including in rail transport and aviation.
The National Bank of Ukraine has approved the head of the board of the nationalized Sense Bank (Kiev), Oleksiy Stupak, selected earlier by the supervisory board of the financial institution for this position following a competition, the bank’s press service said on Monday.
“On February 15, 2024, the National Bank of Ukraine has agreed Oleksiy Stupak as chairman of the board of Sense Bank,” the release said.
As reported, Stupak started his career in 2002 in Pravex Bank, where he was responsible for working with corporate and VIP clients. He then held senior positions at Credit Agricole Bank from 2008.
In June 2019, he joined the Sence Bank team, assuming the position of Corporate Business Director, after which he became the supervisor of Corporate and Investment, SME, which he has been doing until now.
Former Sense Bank CEO Dmitry Kuzmin, who was appointed to this position during the bank’s nationalization at the end of July 2023, resigned by mutual agreement for personal reasons a few weeks after his appointment. Kuzmin’s deputy Yelena Zubchenko, who worked in the Ministry of Finance before the bank’s nationalization, was appointed acting head of the board.
According to the NBU, as of January 1, 2024, Sense Bank ranked 8th among 63 operating banks in Ukraine in terms of assets (UAH 131.2 billion). It was nationalized at the end of July 2023 under a specially adopted law as a systemically important bank with majority shareholders from Russia’s Alfa Group caught up in sanctions. At the same time, the state appointed an entirely new management board and supervisory board.
Blumi LLC (Odesa), a manufacturer of sanitary and hygienic paper products under the Snow Panda brand, produced UAH 41.92 million worth of products in January, up 2.5 times compared to the same month in 2023.
According to statistics provided by UkrPapir Association to Interfax-Ukraine, in physical terms, the production of toilet paper increased by 78.5% to 6.2 million rolls.
As reported, in January, the main producers of sanitary paper products produced 54.56 million rolls of paper, up 27% year-on-year.
Bloomi, which was registered in 2014, produces sanitary products (toilet paper, napkins, towels) based on pulp from imported raw paper. The products are manufactured at the facilities of Omega Brokers PE, one of the leading Ukrainian manufacturers of detergents, disinfectants and sanitary products.
In 2023, the company almost doubled its production volume compared to 2022, to UAH 367.3 million.
In January this year, Ukrainian enterprises increased exports of ferrous scrap by 2.1 times compared to the same period last year, up to 17,160 thousand tons from 8,280 thousand tons.
According to statistics released by the State Customs Service (SCS) on Friday, exports of scrap metal increased 2.15 times in monetary terms to $5.078 million from $2.362 million.
In January, Ukraine exported scrap metal to Poland (95.35%), Germany (4.61%) and the Netherlands (0.04%).
In the first month of the year, the country imported 129 tons of scrap metal from Slovakia for $45 thousand, while in January 2023 there were no imports of this raw material.
As reported, in 2023, the scrap collecting enterprise of Ukraine increased the export of scrap metal from the country by 3.4 times compared to the previous year – up to 182,485 thousand tons from 53,557 thousand tons. In monetary terms, exports increased 2.74 times to $52.723 million from $19.271 million.
Earlier, Ukrmetallurgprom President Oleksandr Kalenkov stated in an op-ed on the Interfax-Ukraine website that scrap metal is exported through the European Union, which has a preferential export duty of EUR3 per ton, and from there the raw materials are redirected to real customers. He noted that exporting raw materials directly to customers would cost EUR180 in export duties, and the Ukrainian budget has already lost UAH 350 million.
The head of Ukrmetallurgprom called for a temporary ban on the export of ferrous scrap to provide steelmakers with strategically important raw materials in the ongoing war. He also clarified that a ton of scrap metal processed into steel brings in 10 times more to the budget than the EU export duty, which is about $300 per ton.
In 2022, Ukraine reduced exports of ferrous scrap by 11.5 times compared to the previous year, to 53,557 thousand tons, and in monetary terms, it decreased by 12.4 times, to $19.271 million.
Italian export credit agency SACE will allocate EUR1.5bn to support trade and financial operations, particularly in the health care and infrastructure sectors.
According to the website of the Ministry of Economy of Ukraine, this was discussed during the meeting between the First Vice Prime Minister of Ukraine – Minister of Economy of Ukraine Yulia Sviridenko and Ambassador Extraordinary and Plenipotentiary of the Italian Republic to Ukraine Pier Francesco Dzadzo, where the Ukrainian side urged SACE to strengthen cooperation with Ukraine and expand the types of covered risks.
In addition, the export credit agency intends to support investments of Italian companies in Ukraine and provide export credits, soft loans and direct investments.
First Deputy Prime Minister noted the importance of supporting Ukrainian small and medium-sized enterprises (SMEs), which is the backbone of the national economy. She stressed that the Government also expects to intensify cooperation with the Italian Agency for Cooperation Development (AICS) to promote local economic development, job creation and support SMEs.
In addition, the sides discussed the return of Ukrainians. The provision of housing for Ukrainians remains important.
SACE is an Italian export credit agency and an active participant of the largest international organizations in the field of export credit. SACE’s activities are regulated by European Union legislation and the OECD Agreement on Officially Supported Export Credits.
AGENCY, INVESTMENTS, ITALY, Ministries of Economy, trade support
