Bloomberg: Ukrainian economy grows despite slowdown across Europe

The Ukrainian economy surged in the second quarter of 2019 despite U.S.-China trade tensions and slowdown across Europe.

“Data this week showed expansion in the former Soviet republic [Ukraine] surged last quarter, even as U.S.-China trade tensions and a wider global slowdown weighed on most of the continent,” Bloomberg reports.

The pace – 4.6% -was unexpectedly quick, the agency notes.

Earlier, the World Bank had warned that if growth didn’t top the rate of recent years it would take half a century to bring income up to the levels of neighboring Poland.

Bloomberg notes that President Volodymyr Zelensky, who won control of parliament last month, has set his sights on expansion of 5% or more in the coming years. A reform plan is fueling optimism among investors and has made the hryvnia this year’s best-performing currency.

“The initial signs are encouraging,” said Viktor Szabo, investment director at Aberdeen Asset Management PLC in London.

For Zsolt Papp, an emerging-market debt-investment specialist at JPMorgan Asset Management, boosting Ukraine’s GDP growth in a sustainable way remains a challenge.

(c) Ukrinform News

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