In March, Ukraine’s GDP fell by 44%, and in May the fall was reduced to 35-40% – thanks to regions where active fighting does not continue.
Last month, the decline in the Ukrainian economy slowed and reached almost 35-40%. This was announced by Deputy Head of the National Bank of Ukraine Serhiy Nikolaychuk, Interfax-Ukraine writes.
“According to the NBU, in March, GDP fell by 44%, and in May the fall decreased to 35-40%,” he specified and added that this was due to regions where there is no active fighting.
At the same time, the deputy head of the NBU noted that now one can only rely on indirect data to estimate GDP.
Speaking about inflation, which reached 18% in May on an annual basis, Mykolaichuk said it was largely determined by the disruption of supply chains and logistics problems. He drew attention to the fact that inflation is highest in the southern region of Ukraine, which is partially occupied, while in the western regions it is the lowest and, in fact, very close to the inflation rate in neighboring countries.
The deputy head of the NBU estimated the inflation expectations of the population at almost 20%. According to him, this is one of the arguments of immediately raising the discount rate from 10% to 25% to ensure positive real rates and reduce inflationary pressure.
Earlier, the Ministry of Agrarian Policy estimated that Ukraine was losing 1.5 billion dollars per month due to Russia’s blockade of ports.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.