Fixed Capital Investments Up 32.2% yoy In 1Q07

In 1Q07 the growth of fixed capital investments in Ukraine doubled from 15.9% in 1Q06 to 32.2% in 1Q07 or USD 5 bln in nominal terms (~19% of GDP over the same period of time). The main contributors to this jump in investments were construction (+39% yoy 1Q07, up from 15.8% in 1Q06) and the continued growth of investment in trade. The growth in capital investments is in line with our expectations and supports our forecasts for real GDP growth of 7.3% for 2007.