Real GDP declined by 4.6% yoy in the second quarter of 2014. Real private consumption contracted by 2.3% yoy likely due to decline in disposable income. Financial constraints against the background of high economic and political uncertainty resulted in drop of real fixed capital accumulation by 18.5% yoy.
Highlight: NBU policy - WHERE THE NBU IS GOING
In August hryvnia weakened sharply from UAH 12 per USD to UAH 14 per USD after several months of relative stability. In response the NBU sold foreign currency in intervention on interbank market and then introduced harsh administrative measures to support national currency. These included among others mandatory sale of all export revenues and restrictions on foreign currency transfers abroad and deposit withdrawals in foreign currency. The NBU stated that during military conflict in the East these administrative measures were justified. It also pressured the commercial banks to stabilize hryvnia exchange rate. Such measures were moderately successful and hryvnia exchange rate returned to levels below UAH 13 per USD.
View the contents of the new issue of MEMU No.9 (167)