Ukraine's GDP contracted by 5.8% in January-August 2020, the Ministry of Economic Development, Trade and Agriculture of Ukraine announced on October 12.
"In August 2020, against the backdrop of continued adaptation to activities amid a soft quarantine, almost all types of economic activity showed a slowdown in the rate of decline, and some even growth, in particular, the retail segment of the market and construction," the agency said on its website.
The Ministry of Economy clarified that in January-August 2020, the consolidated production index slowed down to 6.5% compared with 7.3% in the seven months of this year. According to the ministry, some types of industry showed positive dynamics, in particular the production of consumer durables, as well as construction, transport, trade and agriculture.
The ministry explains the activation of trade by the implementation of deferred demand, its reorientation to the domestic market and an increase in wages, and agriculture, by the active phase of harvesting in all regions.
Among the negative factors affecting the economy, the ministry notes a low investment activity, among the positive ones – adaptation to quarantine conditions, maintaining a relatively high purchasing activity, and a favourable situation in the world markets.
Meanwhile, the Ministry of Economy separately highlights the downward dynamics in agriculture, which will retain its influence until the end of the year. In particular, the matter concerns a lower, compared to last year's record, harvest of grains, a number of vegetables, fruits and oilseeds, the review says. According to the ministry's estimates, agriculture "sank" by 5.5% in August, compared with 5.8% in July and 11.8% in August 2019.
According to the agency, in August, the fall in industrial production deepened compared to August 2019, to 5.3% (4.2% in July), in particular in the processing industry by 7.7% (6.6% in July), in the supply of electricity, gas "minus" 4.6% (0.7% more), while in mining industry "minus" 0.1% (0.7% less).
Meanwhile, the International Monetary Fund (IMF) said on October 13 that it expects Ukraine's GDP for the entire year 2020 to decline by 7.2%, a lower figure than 8.2% projected by the IMF in June.