Business news from Ukraine

GROWTH OF INDUSTRIAL PRODUCTION IN UKRAINE ACCELERATES TO 13% IN APRIL

Industrial production in Ukraine in April 2021 increased by 13% compared to April 2020, while in March the growth was 2.1%, in February and January – a fall of 4.6% and 4%, respectively, the State Statistics Service has said.
The agency clarified that, adjusted for the effect of calendar days, the growth of industrial production in the past month was slightly less – 12.5%.
The State Statistics Service indicates that from March this year, industrial production in April fell by 3.2%, however, taking into account the seasonal adjustment, it increased by 2.7%.
In processing industry in April 2021 versus April 2020, the growth was 18%, in extracting industry and quarrying – 6.9%, in the supply of electricity, gas, steam and conditioned air – 4.5%.
In general, over the four months of this year, industrial production in Ukraine increased by 1.5% compared to the same period last year, including in processing industry – by 1.6%, in the supply of electricity, gas, steam and conditioned air – by 4.2%, in extracting industry and quarrying – decreased by 0.5%.
As reported, industrial production in Ukraine in 2020 fell by 5.2% after falling by 0.5% a year earlier. At the same time, in December last year, for the first time since May 2019, its growth was recorded compared to the same period of the previous year – by 4.8%.

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WORLD BANK IMPROVES FORECAST FOR UKRAINE’S GROSS DOMESTIC PRODUCT GROWTH IN 2021

The World Bank revised upward its forecast for Ukraine’s gross domestic product (GDP) growth in 2021 to 3%, while early October it estimated the prospects for recovery to be twice as modest – at 1.5%.
According to the January 2021 World Bank’s Global Economic Prospects, estimates of the fall of the Ukrainian economy this year at 5.5% and its growth by 3.1% in 2021 remained at the same level.
As reported, the Ministry for Development of Economy, Trade and Agriculture of Ukraine maintains an estimate of the fall in Ukraine’s GDP in 2020 by 4.8% at the end of the year and expects its growth by 4.6% in 2021.
The National Bank of Ukraine (NBU) had previously expected the economy to decline by 6% last year, but towards the end of the year it improved its estimates, to about 5%, predicting a recovery in 2021 by 4.2%. The updated macroeconomic forecast of the NBU will be announced on January 21.

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National Bank of Ukraine expects growth of reserves to $27 bln

The National Bank of Ukraine (NBU) is oriented on the growth of the country’s international reserves in 2020 from $25.3 billion at the beginning of the year to more than $27 billion at the end of the year, Deputy Governor of the National Bank Yurii Heletii has said.

“The indicator of international reserves will be higher than at the beginning of the year. Let me remind you that at the beginning of the year it was $25.3 billion. Our target is more than $27 billion,” he said.

According to the banker, the final volume of international reserves will depend on placements by the Ministry of Finance.

He explained that in the October forecast of the NBU, which assumed that international reserves at the end of this year will amount to $29 billion, it was planned to receive financing from the IMF, the World Bank and the EU.

According to the official, the state of international reserves is satisfactory and, according to the composite criterion, which is calculated according to the EU methodology, exceeds 90%.

As reported, the European Commission, on behalf of the European Union, issued EUR 600 million to Ukraine as part of the macro-financial assistance program related to COVID-19.

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KYIVSKY CARDBOARD MILL KEEPS SLIGHT GROWTH IN PRODUCTION IN 2020

The volume of marketable output of Kyivsky cardboard paper mill (Obukhiv, Kyiv region), a leader in Ukraine’s pulp and paper industry in terms of production and sales, totaled UAH 4.672 billion in January-October 2020, which is 0.7% more than the same figure in January-October 2019.
According to the statistics of the Ukrpapir association, in kind in January-October the plant slightly (by 0.9%) increased production of corrugated packaging, to 196.36 million square meters, being still second in terms of its production in the country after Rubizhne plant (together with Trypilsky packaging plant).
The rate of growth in the production of base paper for sanitary and hygienic products grew by almost 4.5%, to 71,600 tonnes, and production of toilet paper in rolls slowed down by 0.3%, to 370.75 million units.
Output of cardboard increased 3.5%, to 172,840 tonnes, in particular production of boxboard increased by 26.3%, to 57,230 tonnes, while package cardboard (including paper for corrugation) decreased 5%, to 115,630 tonnes.
Kyivsky cardboard paper mill is one of the largest cardboard and paper producers in Europe. It employs almost 2,200 people. It sells produce to almost 700 companies in Ukraine, some CIS member states and the rest of the world.

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WORLD BANK PREDICTS 3% GROWTH OF UKRAINE’S GDP NEXT YEAR

Ukraine’s economy will shrink by 3.5% in 2020 due to the coronavirus-related crisis, while the global economy will lose 5.2% overall, the World Bank announced this in the updated Global Economic Prospects on Tuesday. “The depth of the contraction will depend on the duration of the health crisis, progress on major pending reforms, and the ability to mobilize adequate financing to meet sizable repayment needs,” the World Bank said.
According to the bank, next year the growth of the Ukrainian economy will resume at a rate of 3%, which is lower than the expected recovery of the global economy at 4.2%.
The World Bank said that compared with the previous forecast in January of this year, it worsened expectations of the dynamics of Ukraine’s GDP this year by 7.2 percentage points (pp), and in the next – by 1.2 pp.

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GROWTH OF UKRAINE’S ECONOMY IN Q4, 2019 WAS 2.2%

The growth of Ukraine’s economy in the fourth quarter of 2019 slowed down to 2.2% and will again exceed 3% in the first quarter of 2020, Dmytro Sologub, the Deputy Governor of the National Bank of Ukraine (NBU), has stated. “According to our estimates, behind the growth figure [GDP] of 3.3% in 2019 is the fourth quarter growth of 2.2% … Regarding the first quarter, we currently have an estimate of GDP growth above 3%,” he said at a briefing in Kyiv.
As reported, the NBU worsened the forecast for GDP growth in 2019 to 3.3% from 3.5% and kept it at 3.5% in 2020 and 4% in 2021.

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