Economy showing strong growth?

Print version
Aug. 19, 2011, 12:14 a.m. | Business — by Kyiv Post

Prime Minister Mykola Azarov said Ukraine’s economy grew by 5 percent from the same period a year ago in the first seven months of the year.

Kyiv Post

Azarov says GDPrebounding, but global slowdown could hit economy hard. Prime Minister Mykola Azarov said Ukraine’s economy grew by 5 percent from the same period a year ago in the first seven months of the year, thanks to a strong performance in July.

“In July, we have (growth) of almost 8 percent,” Azarov said on Aug. 16. The figures, which would represent a strong rebound from a 15 percent gross domestic product plunge during the 2009 recession, could not immediately be verified with the State Statistics Committee, which reports GDP figures quarterly.

“Domestic consumption likely remained the key driver of economic growth, while investments stagnated,” Erste Bank said in a note to investors.

Analysts from Erste added: “Overall, the Ukrainian economy remains at a stable growth pace, although real GDP still remains far from its pre-crisis peak. Full economic recovery to pre-crisis levels is expected by the end of 2012. Currently, we leave our real GDP growth forecast of 4.5 percent for 2011 unchanged.”

Ukraine’s ailing economy has been crawling out of the deep economic plunge it experienced during the global recession. After rebounding by 4.2 percent in year-on-year terms during 2010, Ukrainian officials forecast that GDP would increase by another 5 percent this year.

But much depends on the global economic situation. Recent reports of slowing growth in the United States and Europe have sparked fresh fears about a repeat global slowdown. If it happens, demand for steel and other top Ukrainian exports could plunge yet again, eating into GDP.

The Kyiv Post is disabling its online comment section due to an increase in trolls, violent comments and other personal attacks. Other news organizations worldwide have taken similar steps for the same reasons. The Kyiv Post regrets having to take this action. The newspaper believes in a robust public debate, but the discussion must be constructive and intelligent. For the time being, the Kyiv Post will allow comments on its moderated Facebook group The newspaper will consider hosting online comments again when circumstances allow. Thank you from the Kyiv Post.


© 1995–2015 Public Media

Web links to Kyiv Post material are allowed provided that they contain a URL hyperlink to the material and a maximum 500-character extract of the story. Otherwise, all materials contained on this site are protected by copyright law and may not be reproduced without the prior written permission of Public Media at
All information of the Interfax-Ukraine news agency placed on this web site is designed for internal use only. Its reproduction or distribution in any form is prohibited without a written permission of Interfax-Ukraine.