The International Monetary Fund (IMF) has downgraded its forecast for Ukraine's GDP growth in 2016 to 1.5 percent from 2 percent projected in October 2015. The projections are stipulated in the World Economic Outlook (WEO) updated every six months.
“Ukraine’s economy is expected to go to recovery in 2016 due to improved consumer and investment sentiment, a gradual increase in real incomes and the gradual easing of credit conditions,” reads the document.
GDP growth in Ukraine next year is estimated at 2.5 percent and in 2018 it will accelerate to 4 percent.
Inflation this year is projected at 13 percent followed by a decrease to 8.5 percent in 2017.
According to IMF estimates, the current account balance in 2016 will again be in deficit, after a surplus in 2015, and will be “minus” 2.6 percent of GDP. In 2017 the deficit is expected at 2.3 percent of GDP and in 2021 at 2.5 percent of GDP.
As reported, the NBU expects GDP to grow by about 1 percent in 2016 with inflation being 12 percent.
