As shown in the next slide, global value chain participation, as measured by the share of foreign value added in world exports, increased substantially during this period. It is quite plausible that the process of increased fragmentation of production across borders is subject to “diminishing returns” and has its natural limits.
The growth in inflation in the first months of 2021 was driven by a number of factors. Among them were: higher food and fuel prices stronger inflationary pressures from trading partner countries sustained domestic consumer demand. Moreover, prices continue to be influenced by the effects of last year’s hryvnia depreciation. How will inflation behave in the future?