According to the official estimate provided by Ukrainian government, Ukraine’s economy is expected to grow by 3.4% in 2013, however current data available suggests that the forecast was not completely accurate. In the Q1 2013, the value of industrial production decreased by about 5%, and that of construction by 16.8%. Agricultural production was the only one to grow by 5.8%. Exports grew by 1.9% to USD 10.5 B with metallurgy exports on the decline. Imports fell by 6.3% mainly due to decrease in natural gas volume imports. In case the production trend continues in Q2 2013, it is very less likely that the GDP will grow by 3.4%. World Bank decreased forecast for Ukraine from 3.5% to 1% and International Monetary Fund forecasted a 0% change of GDP in 2013.

AgroInvest comment: With decline of demand on foreign markets, no loan provided by IMF due to reforms not being implemented Ukraine is facing consequences in the form of decline in production and lower GDP. 

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