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You're reading: Dragon Capital sharply cuts Ukraine GDP growth forecast, sees big risks for economy
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Speaking at a Jan. 12 press conference, Dragon’s senior economist Olena Bilan said that the key risks for the country’s economy are seen in the budget sphere and the external sector. The consolidated deficit of the budget and the Pension Fund this year will reach some 3 percent of GDP, and the government is to pay large sums on foreign and domestic debts, she added.

“Despite the fact that debt payments this year are almost the same as they were last year, in January-August 2011, before the debt crisis in Europe, it was easier for the government to borrow on the foreign markets. It’s unclear what the situation will be like in the future, although it is likely that no easy access to foreign and domestic resources will be seen,” Bilan said.

Commenting on foreign economic operations, Bilan said that with the present gas contract with Russia, the deficit of Ukraine’s current account would reach some $11.5 billion or 6.2 percent of GDP.

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