Ukraine’s economy is gradually recovering, according to the national Bank
The weakening of quarantine restrictions the production Index of basic industries in June slowed down to 8.9%.
In may 2020 there was a gradual recovery of economic activity in Ukraine and abroad the weakening of quarantine restrictions. This is stated in the macroeconomic and monetary review, the National Bank, released on Thursday, July 2.
Indicated that the fall in the production Index of basic industries (IPBO) slowed to 8.9%, compared to 15.4% in April.
“However, maintaining a number of restrictions on the activities of certain sectors remained a significant factor in the decline of the economy,” – noted in the NBU.
Indicated that the decline in industrial production slowed to 12.2% due to a specific activation of external demand amid optimism caused by a gradual easing of the quarantine.
The recovery of demand of households against the background of improvement in consumer sentiment and wage growth, as well as the restoration of non-food shops and markets caused a slowdown of the decline in retail trade – up to 3.1%.
This increased activity has led to a slowdown of the fall in electricity generation (up 8.2%) and turnover (26%), and along with the resumption of growth in the wholesale trade (1.6 percent).
Despite the slowdown, the decline in passenger traffic remained significant (- 92.3%) due to the continued restrictions on the carriage of railway and urban transport throughout the greater part of the month.
Increase capital budget spending contributed to the slowing of the decline in construction (2.6% yoy).
Earlier it became known that the national Bank gave the forecast for the second half of 2020. Experts believe that the most difficult period for the Ukrainian economy has been completed and then she has to go to growth.
It was also reported that Ukraine has restored the labour market after the quarantine.