Ukraine GDP grows 2.4% yoy in 2Q17

Ukraine’s GDP grew 2.4% yoy in 2Q17, according to the
State Statistics Service provisional estimates released on Aug 14. Previously,
it reported 2.5% yoy GDP growth in 1Q17.

A month ago, the National Bank lowered its 2017 GDP forecast to 1.6% yoy growth
from 1.9% yoy estimated previously. Meanwhile, the Economy Ministry expects
1.8-2.0% yoy GDP growth in 2017, according to its Aug. 14 press release.

Alexander Paraschiy: This result
is better than we expected with the growth has been driven, most likely, by
investments in fixed assets (on the demand side) and services (on the supply
side) amid a widening trade deficit and shrinking industrial production. With
the better 1H17 GDP results, we have a chance for economy growing beyond 2% in
2017. Still with the grain harvest likely to lessen from a year ago, we are not
rushing to revise our 2017 GDP forecast at 1.9% yoy growth.