Of course, despite all the difficulties and challenges of the external and internal nature, we are pleased that we are step by step back to normalize the country’s economic development.
Not everything as it would be desirable, but everything is fine at one moment does not come.
In the first half of 2018, the continuation of positive economic trends and the main signs of macroeconomic stabilization, which took place against the backdrop of reforms in the direction of both increasing incomes, and strengthening the investment component of growth, as well as generally favorable external conditions, was recorded.
In general, after overcoming the decline, the Ukrainian economy has been growing for ten quarters in a row. This suggests that the course on forming an open competitive economy of Ukraine brings relevant results. The acceleration of economic growth was achieved first of all through increased investment and domestic consumer demand.
According to data from the State Statistics Service of Ukraine and the Ministry of the Interior of Ukraine, real GDP in the first quarter of 2018 increased by 3.1% (as compared to the first quarter of 2017), compared with 2.8% in the first quarter of 2017. Real GDP in the II quarter of 2018, compared with the previous quarter (taking into account the seasonal factor), increased by 0.9%, and compared with the II quarter of 2017 – by 3.6%.
In January-June 2018, industrial production increased by 2.5%. The largest increase among the subspecies of the processing industry was observed in chemical production – by 39.5%, machine building – by 6.6%, and in metallurgy – by 1.9%, primarily due to domestic demand from related activities, as well as external demand .
In the first half of 2018, agriculture, which, from June, was formed both through plant and livestock production, showed a significant increase – by 11.4% (“minus” 2.1% in the first half of 2017), in a larger due to the increase in volumes of crop production by 1.8 times (minus 8.5% in the first half of 2017) in the context of a more lively harvest campaign of early varieties of cereals and winter rape in certain regions. Also, livestock production grew by 0.1% (minus 0.9% in the first half of 2017), which was supported by the development of the poultry industry.
During January-June 2018 positive dynamics was observed in some types of economic activity in the sphere of services, in particular, retail sales grew by 6.2%, passenger turnover – by 5.3%, wholesale trade turnover – by 4.6%.
On the whole, economic development in the first half of 2018, despite some negative fluctuations in some indicators of economic activity, including those caused by specific circumstances, forms the basis for further qualitative economic growth in the context of the implementation of the declared reforms. At the same time, we must take into account the conditions that keep the risks of slowing down Ukraine’s economic growth, including possible: the deterioration of foreign trade conditions, in particular through “trade wars” and tougher monetary conditions, which could lead to a contraction of international trade and a decrease in demand for products Ukrainian exports; fiscal dominance, which can restrict public investment and increase debt burden, hampering economic development of the country.