Ministry of Economy found those responsible for the future decline in GDP

The Ministry of Economy predicts a GDP decline in the Q1of 2021. Photo: NBU

The Ministry of Economy predicts a GDP decline in the Q1of 2021. Photo: NBU

The Ministry of Economy expects that Ukraine's GDP will drop by 3% in the Q1 of 2021.

At the same time, the Ministry expects GDP growth from the Q2 of 2021, according to the Economic Activity Review.

However, during January-November 2020, the decline in GDP is estimated at 4.7% compared to the same period in 2019. During this time, the decline in the Composite Manufacturing Index (CMI) for this period slowed to 5.2% compared to 6% in 10 months of 2020.

The review noted that the weekend quarantine introduced in November slowed down the growth rate of the retail and construction sectors compared to October, but did not stop them.

At the same time, the adaptation of certain types of business to quarantine, as well as low inflation and restrained exchange rate dynamics, became positive influencing factors on economic activity.

Among the negative factors: low investment activity and the late crops yield that was lower than last year's level.

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