You're reading: Ukraine’s GDP fall accelerates to 5.9 percent in June, says cabinet

The real fall of Ukraine's GDP in June 2014 came to 5.9 percent year-over-year, while in May it was 4.9 percent, according to an explanatory note to the government's draft amendments to the national budget of 2014 published on Wednesday, July 30.

“Nominal growth of 4.8 percent was taken into account in the forecast for
GDP for 2014, while actually in H1, 2014, nominal GDP fell by 1.1 percent,
according to the preliminary assessment of the State Statistics
Service,” reads the document.

The cabinet assesses the real fall of the Ukrainian economy in H1,
2014 at 2.3 percent and 3 percent in certain extracts of its explanatory note.

The government also said that the International Monetary Fund (IMF)
worsened its projection for GDP fall this year from 5 percent to 6.5 percent.

Earlier on Wednesday, July 30 the State Statistics Service reported that
Ukraine’s real gross domestic product (GDP) in the second quarter of
2014 shrank by 4.7 percent compared with the same period in 2013, while in the
first quarter GDP fell by 1.1 percent.

Ukraine’s GDP in the fourth quarter of 2013 grew by 3.7 percent, prior to
that it had been falling for five quarters in a row: if in the third and
fourth quarters of 2012 the decline was 1.3 percent and 2.5 percent respectively, in
2013 it accelerated from 1.1 percent in the first quarter to 1.3 percent in the second
and third quarters.

In general, in 2013 the GDP growth was zero in Ukraine, and in 2012 it slowed to 0.2 percent from 5.2 percent a year earlier.

The government of Ukraine is expecting the country’s economy in 2014 to fall by 6-6.5 percent.