You're reading: IMF lowers GDP growth in Ukraine in 2012 by 1.8 percentage points

The International Monetary Fund (IMF) has reduced its forecast of GDP growth in Ukraine in 2012 by 1.8 percentage points, to 3%, comparing to the forecast published in September 2011.

According to the World Economic Outlook (WEO), which was published by the IMF on April 17, in 2013 economic dynamics in Ukraine will speed up to 3.5%.

The IMF also improved its forecast of growth of consumer prices in Ukraine (December to December) to 7.9% from 8.5%. According to WEO, inflation in Ukraine (December to December) in 2013 will be 5.9%.

As reported, the Ukrainian government forecast 3.9% GDP growth while drafting the 2012 budget. The government says that inflation in 2012 will be 7.9%.

In addition, the IMF worsened forecast of deficit of the current balance of payments of Ukraine in 2012 to 5.9% of GDP from 5.3% of GDP. At the same time, in 2013 it is expected to reduce to 5.2% of GDP.

As reported, GDP of Ukraine grew to 5.2% in 2011, compared to 4.2% in 2010. Inflation in Ukraine slowed to 4.6% in 2011 from 9.1% in 2010.

According to the National Bank of Ukraine, the deficit of Ukraine’s balance of payments in 2011 increased to 5.5% of GDP from 2.2% of GDP in 2010.