You're reading: Kyiv city expects gross regional product’s growth to accelerate to 5,8 percent in 2018

Growth in physical quantity of gross regional product of Kyiv city in 2018 could accelerate to 5.8 percent compared with 4.3 percent expected in 2017.

The figure is included in the city social and economic development program for 2018-2020 by the Kyiv City Council approved on December 21, 2017.

According to the program published in the Khreschatyk newspaper on Friday, according to the basic scenario, growth of Kyiv’s gross regional product would continue accelerating: to 6.5 percent  in 2019 and to 7 percent in 2020.

Kyiv also plans that the retail trade turnover this year will increase by 11.3 percent, in 2019 – by 12.5 percent, and in 2020 – by 12.4 percent, with the prices growing by 9.6 percent , 6, 7 percent and 6.4 percent respectively.

According to the forecast, the unemployment rate in Kyiv in 2018 will decrease from 7 percent to 6.7 percent, falling in the next two years by 0.2 percentage points annually.

At the same time, the average monthly nominal wage in 2018 will increase to Hr 12,800, continuing growth in 2019-2020 – up to Hr 14,800 and Hr 16,970 respectively.

According to the document, the figures are calculated for 2.95 million people in 2018 with a subsequent population growth of 20,000 people per year.

Kyiv City Council said that the resumption of gross regional product growth began in 2016, when it increased by 3.3 percent after a decline of 7.3 percent in 2014. At the same time, in U.S. dollar terms, due to the devaluation of the hryvnia, the gross regional product per capita in 2016 declined from $7,100 (which is three times higher than the average for Ukraine) to $7,000.

The city estimates that by the end of 2017 this indicator will grow to $ 7,500, while the total gross regional product in actual prices will be Hr 615.9 billion. According to the Kyiv City Council, the share of its gross regional product of Ukraine’s GDP is the highest among the regions – about 22.9 percent.