Business news from Ukraine

EXPERTS EXPECT GDP GROWTH IN UKRAINE BY 4.1% IN 2021

20 April , 2021  

Concorde Capital investment company expects the Ukrainian economy to grow by 4.1% in 2021 with inflation of 8% and an average annual rate of UAH 27.60/$1, according to the company’s updated macroeconomic forecast publon Tuesday.
According to the forecast, at the end of the year the exchange rate will be about UAH 28.20/$1, the current account balance will remain positive – $0.5 billion and reserves will grow to $30.5 billion.
Concorde Capital estimates that GDP fell by 2.7% in the first quarter.
The company also said that the revaluation of the hryvnia stopped due to the increased risk of renewed military aggression, and the same risk led to a further weakening of nonresidents’ interest in the Ukrainian debt market.
Concorde Capital estimates the total need of the state budget for financing at $11.8 billion, of which $4.4 billion will be raised in the domestic market via government bonds, $1.8-4.6 billion from international financial institutions, which forces the country to look for another $5.5-2.8 billion elsewhere.
The company said that as of April 19, net attraction in the government bond market amounted to only UAH 6 billion, although last year the result was even worse – minus UAH 3 billion.
Concorde Capital expects growth to slow down to 3.5% next year, while inflation will drop to 5.5%.

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