KYIV, Feb 13 – Ukraine’s economy probably expanded 3.2% on the year in 2018, compared with 3.1% originally expected, Prime Minister Volodymyr Groysman reported Wednesday citing preliminary statistics data.

"We have a rather positive indicator of 3.2% GDP growth, which is higher than our indicator,” Groysman said at a government meeting. “I believe that real GDP for 2018 will be no less than that."

Meanwhile, the preliminary figure appears to be lower than has been predicted by the National Bank of Ukraine and by the International Monetary Fund.

The IMF in December revised its expectations for Ukraine's GDP growth in 2018, downgrading the forecast to 3.3% from 3.5%.

The NBU earlier this month has reviewed downwards the assessment of growth of real GDP in the country to 3.3% in 2018 from 3.4%, according to the central bank.

Meanwhile, the NBU expected the economy to expand 2.5% on the year in 2019 and 2.9% on the year in 2020and 3.7% in 2021, according to the Economy Ministry.

"Real GDP growth will slow to 2.5% in 2019, as predicted. The slowdown will be driven by the tight monetary policy necessary to bring inflation down to the target level and by the conservative fiscal policy intended to finance significant public debt repayments this year," the NBU said.

Also, grain harvest is expected to decline from the record levels that made agriculture the primary driver of economic growth. Another factor will be a gradual deceleration of growth in the global economy and trade, including due to protectionist measures.

Private consumption will remain a key driver of growth as real household income – wages, pensions, and remittances from abroad – continues to grow, the NBU reported.

"The growth will mainly be propelled by a gradual easing in monetary policy, which will bolster domestic demand, and a pick-up in investment activity, as uncertainty about the political situation diminishes," the NBU reported. (nr/ez)