KYIV

Ukraine’s economy continued to expand in the first seven months of this year, backed by the growth in industry due to favourable conditions on foreign commodity markets.

The country’s gross domestic product (GDP) grew by 2.1 percent year-on-year in January-July compared to a 6.1 percent contraction in the same period last year, the Economy Ministry said. In July 2021, almost all major economic activities, except wholesale trade, demonstrated growth.

The ministry said agriculture had entered an active phase, with high yields of almost all crops. At the same time, the costs of livestock producers increased significantly due to higher feed prices and competition in the domestic market with foreign producers. Transport grew due to both passenger traffic against the background of easing quarantine restrictions and freight turnover.

Ukraine’s exports rose by more than 33 percent year-on-year to $35.5 billion in January-July 2021, while imports of goods increased by 28.6 percent to $37.24 billion, the State Statistics Service said.

In January-July 2021, foreign trade operations were conducted with foreign partners from 228 countries. The largest export deliveries of goods over the reporting period were made to China (for $4.99 billion), Poland ($2.89 billion) and Turkey ($2.08 billion).

Ukraine’s GDP first grew by 6 percent year-on-year in the second quarter, reversing five consecutive quarters of negative growth linked to the imposition of restrictions owing to COVID-19.

The government forecasts 4.1 percent growth for all of 2021, cancelling out last year’s decline of 4 percent. The European Bank for Reconstruction and Development issued a forecast of 3.5 percent GDP growth in June.

Finance Minister Serhiy Marchenko said in July that 2021 growth could be as high as 5 percent. Financial analysts said the final figure could depend to a great extent on the country’s ability to manage COVID, vaccinate Ukrainians and avoid lockdowns that stifle economic activity.