Kyiv, June 22 (Interfax-Ukraine) – The key branches production index in May accelerated to 3.2% year-over-year, from 1.3% in April and 0.5% in March, despite the high comparison basis registered last year, which made it possible to boost the pace of GDP growth, according to the economic analysis and forecasts department of the National Bank of Ukraine.
“According to the department’s estimates, GDP growth in May accelerated, and exceeded 2% in January-May,” reads a document posted by the NBU on Friday.
The NBU noted that the key branches production index in the first five months was 2.2% compared to the same period last year, whereas its January-April 2012 level was 1.8%.
NBU experts said the branches that reflect domestic demand – retail trade (1.4 percentage notches) and construction (0.8 percentage notch) – contributed most to the growth of the index in May.
The stable accumulation of real incomes resulted into an acceleration of volumes of retail commodity turnover from 16.3% in April 2012 from April 2011, to 17.9% in May year-over-year.
The high level of state financing translated into an invigoration of investment activity, which was reflected in the improved performance of the construction industry. In May, for the first time since January 2012, construction posted growth. According to the department, the growth was 9.6% year-over-year.
Strong domestic demand also facilitated an increase in production in some industries. In particular, production in the food industry grew by 3% year-over-year, while growth in wood processing output stood at 1.2%.
At the same time, the NBU notes that external demand remained at a rather low level, which had an impact on the dynamics in export-oriented industries: engineering (an increase by a mere 0.5% year-over-year) and metallurgy (a 1.1% decline).
The only export-oriented industry that showed strong growth (14.9% year-over-year) was the chemical industry – its production was stimulated by high demand for mineral fertilizers on the foreign markets.
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