26
Apr

Economic growth forecast 2017

According to NBU inflation report, economic growth in Ukraine in 2017 will accelerate. As a result of improved conditions for foreign trade and high volume of last year harvest , export growth will resume, assuming no logistical complications in the country.

As a result, the increase in export earnings will allow export oriented companies to continue increasing investments relatively prompt. In conditions of still low rate of potential growth and moderation in import substitution processes increase in domestic demand largely will be satisfied by imported products.

Increase in consumer demand is  a result of minimum wage raising. However, due to additional inflationary pressures from raising the minimum wage, sufficientlly restrained easing in monetary policy is expected, real interest rates remain relatively high to maintain the attractiveness of savings in local currency. As a result, GDP growth will accelerate slightly – to 2.8% and 3.0% in 2017 and 2018 respectively.