Investment in Ukraine fixed assets surge 23% yoy in 1H17
29 August 2017
Investment in Ukraine’s fixed assets surged 22.5% yoy
in 1H17, slightly strengthening from 21.4% yoy in 1Q17, the State Statistics
Office reported on Aug. 28. In 1H17, investment swelled in defense by 78% yoy,
agriculture by 41% yoy, transport infrastructure by 35% yoy, IT &
telecommunication by 25% yoy, industry by 24% yoy and construction by 17%
yoy.
Investment in industry grew primarily in oil and
natural gas extraction (77% yoy growth), iron ore extraction (61% yoy) and
metal production (35% yoy). Regionally, investment in the Dnipropetrovsk
region (43% yoy) and Kyiv city (24% yoy) accounted for half the growth.
Alexander Paraschiy: Investment is growing much faster than expected despite shallow
foreign investment inflow. It’s beng driven by demand for agro-products,
changes in state policy (investments in gas extraction and defense), and steady
interest in metal production. We expect this high investment activity to
continue, though 2H17 will have a high comparative base that will ease growth
rates somewhat. We project investment in 2017 to increase 17.8% yoy.
foreign investment inflow. It’s beng driven by demand for agro-products,
changes in state policy (investments in gas extraction and defense), and steady
interest in metal production. We expect this high investment activity to
continue, though 2H17 will have a high comparative base that will ease growth
rates somewhat. We project investment in 2017 to increase 17.8% yoy.
