Ukraine: Ukrainian economy contracted slightly in 2013, revised data shows
March 24, 2014
According to official data released by State Statistics Service Ukraine, GDP expanded 3.3% in Q4 over the same period of the previous year. The figure, which was the first expansion in six quarters, contrasted the 1.2% fall observed in the third quarter of 2013 and marked the highest print since December 2011. As a result the economy contracted 0.1% in the full year 2013, which contrasted the 0.2% expansion tallied in 2012. On the domestic side of the economy, investment contracted 5.1% year-on-year in Q4 (Q3: -7.7% yoy). Private consumption expanded a healthy 6.8%, but fell short of the 8.4% expansion tallied in Q3. In turn, public consumption marked the lowest reading since Q4 2011, falling 5.1% (Q3: -3.3% yoy). On the external front, exports contracted 4.1% in the fourth quarter (Q3: -7.9% yoy) and imports dropped 1.8% (Q3: -0.7% yoy). As a result, the net contribution of the external sector to GDP growth improved from minus 2.6 percentage points in Q3 to minus 0.6 percentage points in Q4. FocusEconomics participants see the economy expanding 0.3% in 2014, which is down 1.3 percentage points from last month's forecast. For 2015, panelists expect that the economy will grow 1.6%.