S&P Raises Ukraine GDP Forecast

S&P Global Ratings forecasts that growth in Ukraine is set to accelerate further to 3.1% in 2018, and through to 2021 the agency expects average real GDP growth of about 2.9%, S&P said in a report affirming the country’s ratings issued on April 20, Interfax reported. In the previous report dated November 10, 2017, S&P expected that GDP this year would grow by 2.6% with the acceleration to 3% and 3.2% in 2019 and 2020 respectively. S&P said that economic recovery continues to be driven by strengthening domestic demand, high commodity prices, and the economy’s ability to quickly adapt to the Donbas trade blockade. Growth drivers in the Ukrainian economy will remain broadly unchanged, with domestic demand as the main contributor. Notwithstanding macroeconomic improvements, Ukrainian per capita wealth levels remain low. “Despite two consecutive years of growth, per capita GDP ($2,600 in 2017) is still only at 67% of its pre-crisis wealth levels in 2013 and the second-lowest in Europe and the Commonwealth of Independent States after Tajikistan,” S&P said.