Ukrainian Economy Growing Strong
The World Bank is the latest international organization to forecast growth
The World Bank became the latest international organization to forecast growth in Ukraine’s economy.
A World Bank report, released in mid-October, raised this year’s GDP forecast from 2.7 percent to 3.4 percent, with the growth rate set to bump up to 3.7 percent in 2020 and reach 4.2 percent in 2021, Business Ukraine reported.
The positive forecast is largely attributed to the strong performance in the first half of 2019 and Ukrainian President Volodymyr Zelensky’s ambitious reform agenda.
The upgrade comes after Ukraine showed a 4.6 percent year-on-year GDP increase during the second quarter of 2019, easily surpassing expectations.
The IMF recently updated its Ukrainian GDP growth forecast for 2019 from 2.7 percent to 3 percent, while Morgan Stanley upgraded its GDP expectations for the country to 3.2 percent in 2020 and 3.6 percent in 2021.
The optimism is also having a positive effect on Ukraine’s credit ratings. In September, leading international ratings agencies Fitch and Standard & Poor’s both upgraded Ukraine from a “B-“ to “B.”