Ukraine’s economy will shrink by 4.5% this year – EBRD report

In 2020, the Ukrainian economy will contract by 4.5%, according to the report of the European Bank for Reconstruction and Development. At the same time, next year, growth is expected at 5 percent. The Ukrainian economy is experiencing problems, in particular, through the decline in prices for metals and hydrocarbons and the fall in remittances.

According to a report at the disposal of Radio Liberty, on average, the economies of countries that receive investments from the European Bank for Reconstruction and Development, this year will shrink by 3.5%. At the same time, an increase of 4.8% is possible in 2021. The EBRD is basing its forecast on the assumption of a gradual easing of restrictions and a return to normalcy in the second half of this year.

Almost all EBRD countries are experiencing economic decline. Exceptions include Turkmenistan, Uzbekistan and Egypt. The International Monetary Fund predicts a 7.7% drop in Ukraine’s real gross domestic product.

At the same time, the World Bank expects a decline in GDP by 3.5% and inflation at 8.9%. The National Bank of Ukraine expects the Ukrainian economy to fall by 5%.

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