Real gross domestic product (GDP) of Ukraine in the first quarter of 2022 fell by 15.1% compared to the first quarter of 2021 after growing by 6.1% in the fourth quarter of last year, the State Statistics Service published such a preliminary estimate on Thursday.
According to her, compared with the previous quarter (seasonally adjusted), GDP fell by 19.3%.
According to the State Statistics Service, in 2021, Ukraine’s GDP grew by 3.4% after a decline of 3.8% in 2020, its nominal volume amounted to about $200 billion.
The Ministry of Economy estimated the decline in GDP in the first quarter of this year at 16%. According to the World Bank, which predicts a decline in the Ukrainian economy this year by 45.1%, the Ukrainian authorities expect it to decline by 44%.
The Dutch Development Bank (FMO) has reduced the value of its portfolio in Ukraine by EUR200 million, including direct investments – by EUR70 million, loans – by EUR90 million, according to a press release from the bank.
“In Ukraine, we provided financing mainly to agro-industrial companies and the renewable energy sector. After the Russian invasion of Ukraine, FMO published in its annual report that the direct impact on Ukraine amounted to about EUR200 million under contracts with 14 clients,” the message says.
It is indicated that this risk falls on debt products (56%), equities (37%) and guarantees (7%).
“The adjustments reflect management’s updated expectations for revenue and investment recovery impacted by the war in Ukraine,” FMO said.
In addition, the financial institution has indirect risks in Ukraine through borrowed funds in the amount of EUR14 million.
The bank stressed that it has no direct contact with Russia, and the assessment of its portfolio in Belarus has been reduced by about EUR20 million, mainly in the form of capital.
Consumer price growth in Ukraine in May 2022 slowed down to 2.7% from 3.1% in April and 4.5% in March, but exceeded 1.6% in February and 1.3% in January , the State Statistics Service (Gosstat) said on Thursday.
In May last year, inflation was 1.3%, so in annual terms, in May this year, it rose to 18% from 16.4% in April, 13.7% in March, 10.7% in February and 10% – following the results of January, the department indicated.
Core inflation over the past month also declined to 1.4% from 3% in April and 3.8% in March. However, taking into account 0.7% in May 2021 in annual terms, it increased to 13.7% from 13% in April, 10.5% in March, 8.2% in February and 7.6% – at the end of January.
Since the beginning of this year, for its first five months, inflation in Ukraine amounted to 13.9%, and the base – 9.6%, said the State Statistics Service.
The National Bank of Ukraine, as reported by its head Kirill Shevchenko, expected an increase in inflation in May up to 17%.
In the consumer market in May, prices for food and non-alcoholic beverages rose by 2.7%. Most of all (by 14.3% and 11.5%) rice and fruit rose in price. Prices for fish and fish products, grain processing products, vegetables, soft drinks, and pasta increased by 5.9-3.2%. At the same time, prices for eggs fell by 21.2%, beef, sugar, and poultry meat fell by 2.5–0.9%.
Prices for alcoholic beverages and tobacco products increased by 3.9%, incl. for alcoholic beverages – by 6.4%, tobacco products – by 1.5%.
The decrease in prices in the healthcare sector by 0.9% was primarily due to the reduction in the cost of pharmaceutical products by 1.8%.
Transportation prices increased by 10.2% mainly due to the increase in the price of fuel and lubricating oils by 22.8%, as well as road passenger transport fares – by 6.7%.
In the field of communications, prices increased by 1.0%, due to a rise in the cost of postal services by 6.7% and telephone equipment by 2.7%.
As reported, in 2021 inflation in Ukraine rose to 10% from 5% in 2020 and 4.1% in 2019, while core inflation rose to 7.9% against 4.5% a year earlier.
11 Ukrainian universities are included in the QS World University Rankings 2023, the Ministry of Education and Science reports.
“The QS World University Rankings, recognized as the world’s most popular source of comparative data on the success of universities, has been published. The highest position in the ranking among Ukrainian universities is occupied by V.N. Karazin (541-550 position),” the press service of the ministry said in a statement.
It is noted that the rating also includes: National Technical University “Kharkiv Polytechnic Institute” (651-700); Kyiv National Taras Shevchenko University (651-700); National Technical University of Ukraine “Igor Sikorsky Kyiv Polytechnic Institute” (701-750); National University “Lviv Polytechnic” (801-1000); Sumy State University (801–1000); Ivan Franko National University of Lviv (1001-1200); Kharkiv National University of Radio Electronics (1001–1200); National University “Kyiv-Mohyla Academy” (1001-1200); Odessa National University named after I. I. Mechnikov (1001–1200); National University of Bioresources and Nature Management of Ukraine (1201-1400).
QS World University Rankings is a global study and the ranking of the best universities of world importance based on the indicator of achievements in education and science, launched in 2004.
In response to a temporary, for a year, full trade liberalization by the EU, Ukraine is ready to abolish duties on European goods, said Deputy Minister of Economy – Trade Representative of Ukraine Taras Kachka.
“So that we can continue to talk about maintaining the zero-to-zero regime for longer than 12 months, we are ready to introduce such a mechanism now,” Kachka said during a meeting of the committee on finance, tax and customs policy on Thursday.
He added that Ukraine intends, first of all, to abolish duties on agricultural products from the EU.
The trade representative indicated that he sees the need to protect the Ukrainian market from goods from those countries with which there are no preferential terms of trade.
“The competition that we want to defend against is Turkey, China and other countries with which we do not have a preferential trade regime,” he said.
“Therefore, in order to work with the EU on a permanent customs-free trade regime, we want to take such a step. And in the context of our candidacy for the EU, this is very correct and appropriate,” Taras Kachka added.
“It is economically beneficial for us. The only industry where there is an economic imbalance is pork meat, but here it is more likely due to African swine fever, as well as cheese. We had a discussion on cheese whether the market should be protected. On the one hand, in In recent years, there has been an increase in cheese imports, mainly from Poland, but the total share of imported cheeses does not exceed 25%… There are no clear signs of harm for Ukrainian cheese producers,” Kachka explained.
On Thursday, the Verkhovna Rada Committee on Finance, Tax and Customs Policy recommended that the parliament adopt as a basis and in general government bill No. 7418 on the abolition of duties and VAT on imported goods, including cars, from July 1.
The draft document was supported by 19 committee members, four abstained.
In addition, the bill will provide for a provision allowing the government to provide mirror benefits for duties on foreign goods, where zero duties are set for similar Ukrainian items. We are talking about mutual recognition of the liberalization of the terms of trade, in particular in the EU.
As Yury Draganchuk, Deputy Minister of Finance, noted during the discussion, the government is developing a draft law on simplified customs clearance of cars through Diya.
As reported, bill No. 7418 amending the Tax Code and other laws on the return of all customs duties and VAT on imported goods, including cars. He also proposes to resume taxation, which was abolished by law No. 2142, for goods imported by single tax payers of the first and third groups, since on average the budget loses about UAH 3 billion in import duties on this benefit per month.
