Economic outlook: growth continues, but fiscal risks remain
Ukraine’s economic growth is slightly accelerating: after growing by 2.5% in 2017, real GDP is forecast to increase by 3.2% this year and 3.3% in 2019. The demand-side drivers are investment and consumption, with most sectors on the supply side growing as well. Inflation continues to run above the National Bank’s inflation target and is forecast at 9% at the end of 2018. This has led to hikes in the policy rate, which currently amounts to 17.5%. In all likelihood, inflation will only return to the target band set by the National Bank at the end of next year.