You're reading: IMF downgrades forecast for Ukraine’s GDP in 2013 by 3.5 percentage points

The International Monetary Fund (IMF) has downgraded the forecast for GDP in Ukraine in 2013 to zero from 3.5% in October 2012. 

The corresponding estimate is given in the World Economic Outlook (WEO) released by the fund on Tuesday.

According to the IMF, in 2014 Ukraine’s GDP growth is expected at 2.8%.

The IMF also forecast growth in average annual inflation in Ukraine in 2013 of 0.5% (after 0.6% in 2012), whereas previously it expected growth of 7.4%. According to the April WEO, the growth of average annual inflation in Ukraine in 2014 will accelerate to 4.7%.

In addition, the fund downgraded its forecast for Ukraine’s current account deficit in 2013 by 1.3 percentage points, to 7.9% of GDP. In 2014, the deficit is expected to decline to 7.8% of GDP.

As reported, the Ukrainian government is expecting GDP in 2013 to reach 2.5-3.4% with inflation being 4.8-6.1%.