The national Bank said the reasons for the accelerating growth of the Ukrainian economy

The National Bank of Ukraine explained that the acceleration of growth of the economy in the II quarter of 2019 to 4.6% was due to trade and agriculture.

Нацбанк назвал причины ускорения роста украинской экономики

This was stated by the head of the national Bank Council Bohdan Danylyshyn on Facebook.

According to him, most likely, there are two key components of such dynamics of Ukraine’s GDP.

“The first is the growth of retail turnover: 10.3% January-June of the current year to the corresponding period in 2018 and 7.8% in the second quarter of 2019 in comparison with II quarter of last year,” he wrote in the social network.

According to Danylyshyn, to a large extent this is due to rising incomes. By the end of June the average nominal wage increased by 8.1% in annual terms.

“However, quite a long period of growth of wages, which is observed in our country, indicates that without an increase in productivity and efficiency of labor increase in wages could slow down, if not stop. Especially that one of the reasons wage growth is the massive labor migration, the potential of which probably went to the border,” he added.

As explained by the head of the NBU Council, the second key component of the good dynamics of GDP growth in agriculture. Index of agricultural products in January-June this year increased by 5.8%, in II quarter of 2019 in comparison to the second quarter of 2018 6.3%. In the agro predictable situation continues to improve in 7 months, the index of agricultural products amounted to 112%.

“And here I wonder who set himself more than once, and that bothers me more and more — how long agriculture can be the main trigger of economic growth in Ukraine?” — said Danylyshyn.

At the same time, the index of industrial production for January-June of 2019, compared to the same period last year, showed a very modest rate, reaching 100.5% of.

“An increase of 0.5% is not particularly impressive,” said the head of the Council of the national Bank.

As stressed Danylyshyn, now we can say the following — despite a fairly decent rates of economic dynamics in Ukraine, the quality of growth remain serious issues.