Ukrainian Economy Grows Most Since 2013, Though Misses Forecasts

  • Second-quarter GDP rose annual 1.3% vs. 1.7% seen in survey
  • Growth driven by trade, construction, Adamant Capital says

Ukraine’s economy expanded the most since 2013, though missed economist forecasts as its lackluster recovery from recession continued.

Gross domestic product rose 1.3 percent from a year earlier between April and June after inching up 0.1 percent in the previous three months, preliminary State Statistics Office data showed Monday. That compares with the 1.7 percent median estimate in a Bloomberg survey of seven economists. Seasonally adjusted GDP advanced 0.6 percent from the first quarter.

Trade and construction drove growth, according to Konstantin Fastovets, an economist at Adamant Capital in the capital, Kiev. A pickup in bank lending may give GDP a further boost later this year, he said.

The economy is healing from a second revolution in a decade and upheaval from a pro-Russian insurgency. While it posted the first annual growth since 2014 in the previous quarter, recovery is being held back by holdups in a $17.5 billion international bailout, a lack of urgency in tackling corruption and a benchmark interest rate of 15.5 percent.

— With assistance by Zoya Shilova, and Daryna Krasnolutska

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