Ministry of Economic Development, Trade and Agriculture preserves the forecast of 4.6% GDP growth for 2021, which was approved in July. In the time since the approval of this forecast, there has been some change in the conditions of the economy, in particular, due to the second wave of the pandemic in Ukraine and the world. However, the positive dynamics of GDP is quite probable, given the beginning of the launch of vaccination in the world, as well as the continued implementation of incentives by the Government and the NBU.
This was stated by the Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko during the discussion on the macroeconomic prospects of Ukraine for 2021 in the framework of the annual Ukrainian Investment Roadshow.
“The Government continues to improve and implement specific programs that will have a positive impact on GDP and the country's economy as a whole. In particular, we are talking about expanding financial instruments for business, supporting the national producer, reforming the railway industry, strengthening export opportunities, launching large-scale privatization, expanding support for agriculture through agricultural insurance and irrigation, and launching land reform,” said the Minister.
It is projected that this year's decline in GDP (at 4.8-5% by the end of the year) will gradually slow down and by the end of the first quarter of 2021 may reach 3%.
“From April 2021, we expect an active recovery and positive growth dynamics. This is possible due to the increase in domestic demand, including through the implementation of measures taken by the Government and the NBU, as well as due to the improvement of the foreign economic situation and the situation in the world,” Ihor Petrashko added.
Developed government initiatives to increase foreign direct investment also remain an important factor aimed to ensure economic recovery. Among the promising tools for attracting investment - a public-private partnership, industrial parks, benefits and advantages for new investors under the bill "On state support of investment projects with significant investment."