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GDP rises 4.4% y-o-y in 1H11

GDP rises 4.4% y-o-y in 1H11

21 July 2011

Ukraine’s GDP grew 4.4% y-o-y in 1H11 and industrial output rose 9% y-o-y during the period, Prime Minister Mykola Azarov said yesterday. The main contributions to GDP in 1H11 were processing industry – over 10%, construction – over 15%, machinery – over 21.2%, and chemical production – 22%. Svetlana Rekrut: We attribute solid 1H11 GDP and industrial production growth to three main triggers: the external market recovery in 1Q11, domestic demand and fixed capital investment growth given large infrastructure spending prior to hosting Euro-2012. We expect GDP growth to slow in 2H11, bringing the 2011 figure to +4.5% y-o-y while we see industrial production at yearend up 9% y-o-y.

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