12:56 23 Jun 2021

Ukrainian economy began to recover after covid crisis - NBU

The Ukrainian economy began to recover after almost a year and a half of the crisis caused by the COVID-19 pandemic.

Deputy Head of the National Bank of Ukraine, Dmytro Solohub stated this at a press briefing, Liga reports.

According to him, the crisis has bypassed Ukraine's banking system.

"Analyzing the performance of the banking system in terms of financial stability, we see that the economy is emerging from a 16-month crisis. And if you look at the report on financial stability, you can see that the crisis, in fact, didn't begin for the banking system. Although there were many concerns, given the behavior of the banking system during past crises. Now the situation is quite normal," Solohub said. 

He ensured that the situation "is quite normal and the banking system is working." According to Solohub, the crisis was overcome thanks to the reforms carried out in 2015-2016.

"This year, we're resuming stress testing of banks to ensure the stability of the financial system, which will be a reliable guarantee of economic growth in the country," Solohub added. 

The NBU also said that stabilization and economic recovery were helped by favorable conditions for Ukrainian goods in foreign markets and increased domestic demand.

Also, in late April, the Ministry of Economy updated the consensus forecast. Ukraine's GDP growth in 2021 is expected at 4.1% against the previous estimate of 3.2% in July 2020, and 3.7% (3.5%) in 2022.

According to the NBU forecasts, in 2021, Ukraine's economy will grow by 3.8% and inflation will accelerate to 8%.

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