Photo by Mufid Majnun on Unsplash

The Ukrainian Ministry of Economy, in contrast, says that the economy is recovering.

Ukraine is experiencing soaring inflation and higher interest rates due to the pandemic, and it has now led the Ukrainian economy to jump back into recession, writes Bloomberg. The media reports that second-quarter gross domestic product decreased by 0.8 percent, compared to the same period last year when inflation is considered. 

Bloomberg also points out that the first-quarter gross domestic product fell by 1.2 percent, which means that the economy has been falling for two quarters now. Among other things, the media blames the slow vaccination process and the pandemic for the results. 

“While new Covid-19 infections have stabilized and most restrictions to stem the disease’s spread were lifted in May, Ukrainians have endured one of Europe’s slowest vaccination campaigns, holding back a rebound economists expected to be driven by consumers and agriculture,” Bloomberg points out.

Andersson about raising interest rate: It is not enough

Vaccination is slow

The Covid-situation in Ukraine is better than it has been for a long time. Yesterday, Ukraine registered only 417 new Covid-19 cases and 14 deaths, while 248 Covid patients have recovered. Thus, the total number of deaths since the start of the pandemic is now 53,255. 

Ukraine, however, has been criticized for testing very little, and there is a growing fear that the new and more contagious Delta-variant could force the Ukrainian government to introduce a new lockdown in fall or winter. 

“Last year, the peak of daily infections came two months after the daily number of cases we’re seeing now,” said the Ukrainian Deputy Health Minister Ihor Kuzin, according to Kyiv Post, and said that the only way to prevent that is with vaccination. 

The vaccination process is, however, still going slow. 2.7 million Ukrainians are fully vaccinated, while another 2 million have received the first dose of the vaccine. 46,371 received their first dose yesterday, and 29,777 their second dose. With this speed, it will take a long time for Ukraine to get everyone vaccinated, and it might never happen. 

A problem for Ukraine is that up to 60 percent of its citizens are skeptical of vaccination and don’t want to be vaccinated, according to AP

Minister: Economy is better

While Bloomberg is talking about a recession in the Ukrainian economy and problems with the pandemic, the Ukrainian Ministry of Economy talks about growth. In a statement, the ministry says that the Ukrainian economy experienced 5.4 percent growth in the second quarter, compared to the same period last year.

“We are seeing a recovery in the manufacturing sector; all types of economic activity are showing growth, except for agriculture. These factors will compensate for the current lag in economic development and maintain a positive trend until the end of the year. Our goal is to grow GDP by 4 percent,” said Minister of Economy Oleksiy Lyubchenko and stated that the Ukrainian government has done everything to better the economy. 

“Affordable loans program 5-7-9%, the state program with business support during quarantine, introduction of a moratorium on inspections and much more. The state has mobilized all available measures to keep tens of thousands of Ukrainian companies and hundreds of thousands of jobs. And we have already received results – a stable growth of actual GDP,” he said.