In May, the Ukraine’s GDP growth has accelerated and for January-May has exceeded a bit over 2%, the official website of the National Bank of Ukraine (NBU) informs.

In addition, according to the NBU, in spite of the high comparison base of the last year, in May the growth of production index of main industries (PIMI) has accelerated to 3.2% in annual terms (1.3% in April). At the same time, the PIMI growth in January-May was 2.2% compared to the corresponding period last year.

The largest contribution to the PIMI growth in May did the areas reflecting the condition of domestic demand – the retail trade (1.4) and the construction (0.8).
The National Bank noted that due to the stable growth trend in real income of population, the retail sales accelerated from 16.3% in April, in annual terms, to 17.9% in May. In addition, the high levels of state funding contributed to the revival of the investment activity, reflected in the upside of the construction industry. For the first time since January of this year, in May there was an increase in the construction works volume, about 9.6% in annual terms according to the estimate of the NBU relevant department.

The strong domestic demand also has stimulated the production capacity of some industries. Thus, the increase in the food production has made up 3% in annual terms, in the wood processing - 1.2%, etc.

However, according to the NBU, the foreign demand has remained at a low enough level, having the impact on the dynamics of the export-oriented industries – the mechanical engineering (an increase of only 0.5% in annual terms) and metallurgy (decrease of 1.1%).

The only export-oriented industrial sector showed strong growth (14.9% in annual terms) has been the chemical and the petrochemical industries, whose production was stimulated by the high external demand for fertilizer.


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