Analyst: “We are keeping our initial forecast unchanged at 19.8% yoy growth for 2017 despite the recent slowdown.
KYIV, Nov 28, 2017 – Investments in fixed assets in Ukraine grew 20.7% yoy in 9M17, slowing from 22.5% yoy growth in 1H17, Concorde Capital informed clients based on a State Statistics Service report on Nov. 24. The growth was driven by investments in state administration and defense (58.9% yoy growth), transport infrastructure (57.9% yoy), agriculture (36.7% yoy) and industry (22.0% yoy). Investments in industry were driven by carpentry (89.8% yoy growth), iron ore extraction (48.3% yoy), oil and gas extraction (29.0% yoy), and metal production (27.6% yoy). Regionally, the Dnipropetrovsk region (29.3% yoy) and Kyiv city (22.5% yoy) contributed the most to investment growth in 9M17. Concorde analyst Alexander Paraschiy added: “Local investments eased but they still grew in the double digits. We estimated a 18.2% yoy investments increase in 3Q17 from 23.3% yoy growth in the prior quarter. The main sources for the slowdown were oil and gas extraction (-18.4% yoy in 3Q17 vs. 105.2% yoy growth), telecommunication (-8.5% yoy vs. 42.2% yoy growth) and construction (-2.8% yoy vs. 35.2% yoy growth). The high comparative base for all the sectors explains their drop in 3Q17. Last year, investments in fixed assets were strong (27.2% yoy growth in 3Q16) and the above-mentioned sectors were among the drivers for that surge. Against this backdrop, we are keeping our initial forecast unchanged at 19.8% yoy growth for 2017 despite the recent slowdown. ### For more information, link here: www.concorde.ua
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