Kyiv.Ukraine.Ukraine Gate – October 31,2021- The National Bank expects that the record harvest of cereals will not only reach 0.8 percentage points of GDP this year, but also have a positive impact on the food industry, transport and trade and ensure the stability of export earnings.
Impact of record crops on GDP
According to the regulator, an increase in the grain yield of 10% gives an additional growth of agriculture by 3.4 percentage points and a direct impact on real GDP growth – by 0.3 percentage points.
This is the third record in the past four years. The big harvest plays an important role in the recovery of the Ukrainian economy after the Corona crisis.
According to NBU estimates, the direct contribution to real GDP growth will only be 0.8 percentage points.
The record harvest will have a positive impact on a number of related activities and ensure the stability of export earnings. We are talking about transportation, commerce, the food industry, hotels and restaurants, “and even public administration, defense and education.”
