Ukraine: GDP contraction eases again in Q4 2020
February 15, 2021
A preliminary release revealed that GDP shrank 0.7% year-on-year in the final quarter of 2020, slightly beating market analysts’ expectations and moderating from Q3’s 3.5% drop. The downturn was also the softest out of four consecutive quarters of declining output. Although a comprehensive release is not yet available, the milder contraction in large part likely reflected recovering activity in the industrial and retail trade sectors.
On a seasonally-adjusted quarter-on-quarter basis, output rose 0.8% in Q4, easing markedly from the 8.5% surge logged in the previous quarter.
Commenting on the economic outlook for this year, Andrew Matheny and Tadas Gedminas, analysts at Goldman Sachs, highlighted:
“Looking further ahead, while the lockdown in January could pose a small near-term drag on growth, we continue to expect GDP to rebound sharply this year as a broader reopening of the economy takes place in Ukraine and elsewhere.”
Author: Javier Colato, Economist