What will happen to the economy in 2019: response of the NBU

In 2019, the growth in real gross domestic product of Ukraine will slow down to 2.5% compared to last year.

Over the past the year 2018, the Ukrainian economy grew the most in 7 years – by 3.3%, according to the National Bank.

However, in 2019, the national Bank predicts that real GDP growth will slow to 2.5%.

This is due to the tight monetary policy needed to reduce inflation to the target of 5% in 2020, and a restrained fiscal policy, due to the repayment of significant amounts of debt this year
– stated in the message.

The NBU added that the expected reduction in grain yield after the record of agriculture in 2018.

“An additional factor will be a gradual slowdown in the global economy and world trade volumes, particularly due to the impact of protectionist measures in the world,” reports the controller.

The NBU expects that a key engine of economic growth will remain private consumption due to a further increase in real incomes – wages, pensions, and remittances from abroad.

In recent years, for the first time Ukraine entered the top ten of the world’s leading exporter of dairy products. In addition, the Ukrainian agricultural exports the results of 2018 reached a new record. It exceeded 18,8 billions of dollars. In 2018 184 thousands of Ukrainian programmers have ensured the export of IT products, for $ 4.5 billion. In terms of export industry ranked second in the country.

 

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