Finance Ministry expects GDP growth to over 11% and fall in inflation to less than 5% in three years

Source : 112 Ukraine

Cabinet of Ministers approved growth forecast for Ukraine’s gross domestic product by 3-4% in 2018-2010
17:35, 14 June 2017

Ministry of Finance expects over 11% of growth in GDP and decline in the inflation rate to less than 5% during the next three years. This was reported by Oleksandr Danylyuk, Ukraine's finance minister, during the presentation of budget resolution until 2020, according to Ukrainian News.

"It is expected that GDP will grow by more than 11% in three years, while inflation will reduce to less than 5%," he said.

Beyond that, Finance Ministry plans to reduce public debt to 55% of GDP by 2020, government budget deficit to 2% of GDP, Ukrainian News reported.

Minister added, that the suggested medium term budget resolution is based on the macro indicators, which were approved by the Cabinet of Ministers in late May.

On May 31 Cabinet of Ministers approved growth forecast for Ukraine’s gross domestic product by 3-4% in 2018-2010.

According to the moderate scenario, used as the basis by the government, GDP growth in 2018 will be 3%, 3.6% in 2019 and 4% in 2020.

At the same time, inflation (December to December) is forecast to be 7% in 2018, 5.9% in 2019 and 5% in 2020.

The rate of unemployment is estimated to be 9.1% in 2018, 8.9% in 2019 and 8.5% in 2020.

Second scenario, which appears to be more optimistic, provides for an increase in GDP in 2018 and 2019 by 4%, and 5% in 2020.

The third one being the most pessimistic by expectations due to stable tendencies in world economy, foresees the increase in GDP by 1.2% in 2018, 1% in 2019 and 1.7% in 2020.

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