Executive Summary
• According to the IER, real GDP growth accelerated to 4.4% yoy in July from 3.1% yoy in June due to a faster harvest than last year.
• In July, problems with the access to electricity were among the biggest impediments to business activity. The power outages were temporarily suspended at the end of July.
• Cargo transportation by Ukrzaliznytsia decreased slightly in July compared to June.
• Exports in July, according to Customs, partially recovered after a decline in June. This was facilitated by the relatively rapid harvesting of early grains.
• Imports in July increased primarily due to higher imports of electricity, as well as higher volumes of imports of engineering products related to access to electricity.
• The need to increase state budget expenditures on defense and security prompted the government to initiate changes in tax legislation.
• Inflows of international aid helped the government finance higher spending in July.
• Ukraine announced an exchange offer and consent solicitation for its existing Sovereign Eurobonds and Ukravtodor Guaranteed Eurobonds.
• In July, according to the Ukrstat, inflation reached 5.4% yoy.
• In recent weeks, hryvnia has suspended its gradual but steady decline against the US dollar and fluctuated in the range of UAH 41.0-41.5 per dollar.
• In July, the NBU unanimously left the key policy rate at 13% per annum and pointed to the low likelihood of further rate cuts this year.