Investment in Ukraine fixed assets rise 9.6% yoy in 1H16

Investment in fixed assets in Ukraine sped up 9.6% yoy in 1H16 from 0.7% yoy in 1Q16, according to state statistics released on August 26. Virtually all sectors demonstrated growth except for telecommunications (-65% yoy in 1H16), arts and sports (-28% yoy), the financial sector (-11% yoy) and construction (-2% yoy).

In 1H15, investment in fixed assets fell 9.2% yoy.

Alexander Paraschiy:  Investments are recovering much faster than we expected, which we estimated surged nearly 17.0% yoy in 2Q16, growth rates not seen since mid-2012. So far, it’s not clear how sustainable this two-digit growth might be amid volatility of the current economy. Still, even the results observed till now give the grounds for a potential upward revision of our investment forecast. Initially, we estimated 2.3% yoy of investment growth in 2016 but if current tendencies are preserved, we can’t rule out 10% expansion this year.