Ukraine's economy grows at fastest rate since 2013

Ukraine's economy grows at fastest rate since 2013
Ukraine's economy grows at fastest rate since 2013.
By bne IntelliNews August 15, 2016

Ukraine’s economy in the second quarter of this year grew at its fastest rate since 2013, expanding by 1.3% compared to a year earlier, preliminary State Statistics Office data released on August 15 showed.

The economy might have expanded the most since 2013, but growth missed the Bloomberg consensus forecast for 1.7%, though it is still on target to hit the official forecast for 1.0% growth for the full year. The economy crashed after the start of the Euromaidan protests contracting by 6.8% in 2014 and 9.9% in 2015.

The second-quarter result was better than the marginal 0.1% expansion seen in the first quarter of this year and suggests the economy has passed its nadir, though the recovery is being hampered by holdups in a $17.5bn IMF-led bailout, a lack of zeal in tackling corruption and a benchmark interest rate of 15.5%.

“The macro performance for Ukraine this year has been very encouraging, and more or less in line with IMF-defined targets, albeit the latter programme is currently stalled,” said Tim Ash, head of CEEMEA strategy at Nomura in an emailed note.

 

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