You're reading: Ukraine central bank fears this year’s GDP growth will be lower than expected

The GDP growth in Ukraine in the first quarter of 2017 year on year was 2.5 percent, which is lower than the 3 percent forecast for this period, its slowdown will continue in the second quarter, the National Bank of Ukraine (NBU) said on June 22.

“The current dynamics of GDP and its components, despite the intensification of private consumption and a rather high investment demand, shows the increased risks that the GDP growth in 2017 may be lower than the 1.9 percent year on year projected by the NBU in its report on inflation [dated April], “the central bank said.

Among the main factors of the GDP slowdown, the NBU lists transport communications halt with the uncontrolled territories of Donbas and the seizure of mining and metallurgical enterprises there.