Real GDP may drop by 5.9% this year, Ukraine’s Institute for Economic Research and Policy Consulting has said in a survey.
“We expect substantial damage to the economy from domestic restrictions and lower external demand. A gradual recovery is expected in the second half of 2020, but economic activity will remain lower than the pre-crisis level,” the document reads.
Experts say consumer inflation is projected to rise only to 7.5% in December, as weak demand will limit the impact of higher inflation expectations and the depreciation of the hryvnia.
According to the analysis, the average hryvnia exchange rate in 2020 at the level of UAH 28.7 per U.S. dollar was used to make the forecast.