Milovanov said the reasons for the slowdown of Ukraine’s economy

The Ministry of Economics commented on the data of the State statistics service about the slowdown of the Ukrainian economy.

Милованов назвал причины замедления экономики Украины

According to the data, in the fourth quarter of 2019 economic growth slowed to 1.5%, reports Hvylya, citing the Ministry website.

According to the head of the Ministry of economic development, trade and agriculture Timofey Milovanov, the results 2019, “economic activity remained at a fairly high level.”

“At the end of the year, the economy slowed somewhat. It was expected and predictable”, — said the Minister.

The Ministry noted that the slowdown was due to the early timing of the harvest of grain and other crops.

“The warm weather led to early fees, with the result that, in contrast to 2018, the main harvest of cereals fell for the III quarter. And accordingly, during this period agriculture was a good performance against the background of record crops and significant reduction in IV quarter”, — the Ministry said.

Also in the Ministry of economy reiterated the reasons that the Agency is constantly repeated during the autumn-winter period, namely:

· negative trends in foreign markets.

In particular, significantly decreased the prices for ferrous metals on average by 10-15% compared to 2018. In the result, the metallurgical production decreased by 3.1% per year (10% in December), which had the highest contribution to the overall fall of the industry.

· Protectionist measures from the United States, followed by quantitative restrictions, the EU and Egypt.

New trade restrictions by the Russian Federation, introduced in late 2018.

The last factor is the most hit on mechanical engineering, production of which decreased for the year by 5.6%.

· Problems with logistics.

In the past year significantly increased the load on the black sea ports, which was due to increased volumes of grain, coal and metals, which shifted from European destinations and Azov ports.

· Warm weather conditions, which resulted in a reduction in energy demand (along with the decline in production in the industries-key consumers of energy) and a corresponding decline in the supply of electricity, gas and steam by 4.1% (and by 15.7% in December).

· Low harvest of sugar beet, fruits and vegetables had an important impact on the food industry, the growth of which slowed to 0.2%.

“Of course, the negative impact of these factors substantially intensified the deterioration of the price competitiveness of domestic enterprises due to the strengthening of the exchange rate and the high rate of increase of salaries due to high competition between employers in the labor market”, — concluded the Ministry of economy.