Ukraine's GDP growth in 2013 will be 1.1 percent, while previously the figure was expected to reach 2.4 percent, according to Ernst&Young international audit and consulting firm.
“The slowdown in economic growth [in Ukraine], due to the uncertainty with gas agreements, will brighten up with a further rise on the background of stronger export positions in 2014. The economic downturn caused by the industrial recession continued in the first quarter of this year, and the economy is expected to recover only after the revival of the European markets,” reads a press release of Ernst&Young in Ukraine, with reference to the quarterly review Rapid-Growth Markets Forecast.
According to the survey, the significant deficit of the current account and the need to repay the foreign debt will mean that Ukraine will have to attract new credit resources from external sources and larger revenues in foreign direct investment.
“Given the absence of gas agreements with Russia, the condition for obtaining a new loan from the IMF could be an increase in energy prices, which will only delay the economic recovery of the country,” reads the document.
The company also forecasts 5 percent inflation in 2013.
