Ukraine’s GDP annualized has been decreasing for the fifth quarter in a row, but the Cabinet still does not know how to stop it. This was stated by OPPOSITION PLATFORM – FOR LIFE MP Serhiy Lovochkin commenting on new data from the State Statistics Service on economic shrinkage in Q1 2021.
“According to the most recent information, Ukraine’s GDP saw a 2-percent decrease in real terms compared to the first quarter of 2020. The decline showed in all basic sectors of the real economy: the manufacturing industry fell by 2 percent, agricultural production by 4.8 percent, construction by 12.3 percent, cargo turnover by 5.9 percent, passenger turnover by 35.3 percent. For the fifth quarter in a row, the economy has been sliding, and the Cabinet still has no idea how to stop it. This is a tendency that poses a threat to the nation and its citizens,” the politician said.
According to the MP, this continuous economic shrinkage only partly results from the epidemic and the lockdowns, both national and regional ones.
“In many ways, this has resulted from complete absence of state support for basic economic sectors, from stagnation of loans and worse investment climate, including due to escalation of the Donbas conflict. Foreign direct investment shortened by $0.3 billion in the first quarter of 2021, and this can only be explained with the government’s mistakes,” Lovochkin said.
The member of parliament reminded that the National Bank had lowered its estimated annual GDP growth from 4.2 percent to 3.8 percent after the data on the Q1 2021 was released.
“This means that if the tendency remains, Ukraine will not be able in 2021 to make up for last year’s economic decline. Against the backdrop of increasing prices and utility fees, low economic growth rates threaten with high poverty level among citizens, low subsistence rate (almost half of its real level) and other social standards, including minimum pensions and birth payments. Neither the political opposition, nor the people of Ukraine are satisfied with this situation. Therefore, the change of government is a key question for the parliament,” Lovochkin said.Follow @serhiylovochkin