Ukraine: GDP contracts most in three years
January 30, 2013
In the forth quarter, GDP contracted 2.7% over the same period the year before, according to a preliminary estimate released by the National Statistics Institute on 30 January. The decline exceeded the 1.3% fall observed in the third quarter and represents the largest decrease recorded in three years. For the whole year 2012, GDP increased 0.2%, which is down from the 5.2% expansion recorded in 2011.
A quarter-on-quarter comparison corroborates the contraction suggested by the annual figures, as the economy dropped a seasonally adjusted 0.9% in Q4, which followed the 1.2% fall observed in the third quarter. Thus, if the preliminary result is confirmed once more complete data for GDP is released, Ukraine would have entered into technical recession by the end of 2012. Revised data for economic activity will be available in March.
The government sees economic growth reaching between 3.0% in 2013.