Economic Monitor

Economic Monitor Issue 12 | June 2020


  • GDP: Due to COVID-19, the Ukrainian economy is forecast to decline by 7.0% in 2020, followed by a small growth of 1.1% in 2021
  • The significant decline of GDP is a combination of domestic lockdown measures as well as a deterioration in the global environment
  • Due to significant progress with macroeconomic stability during recent years, Ukraine faces this global crisis much better prepared than in the past
  • A flexible exchange rate acts as a shock absorber and protects international reserves (Jun-20: USD 25.4 bn)v
  • The current account will almost be balanced in 2020 (-0.3% of GDP), as imports shrink faster than exports
  • But: lower FDI and reversal of private capital inflows create problems for financing the current account deficit
  • Low inflation (May-20: 1.7%) allowed the NBU to decrease the policy rate, supporting the economy
  • Public finances: after years of moderate deficits, the budget deficit is set to rise to 7.5% of GDP in 2020 as a result of the crisis

Economic Monitor Issue 11 | January 2020


  • Labour migration. Increasing migration supports growth in real wages.
  • Reform agenda of the government. Ambitious economic policy goals require comprehensive reforms
  • IMF programme. New agreement is a positive signal and supports the reform agenda
  • Reform proposals of German business in Ukraine. Update of our study shows progress in improving the investment climate
  • Gas transit deal. Agreement between Naftogaz and Gazprom on gas transit is a positive development