Fitch international rating agency has worsened the forecast of GDP growth in Ukraine in 2017 from 2.5% to 2%. This is reported by the Ukrainian News.
"Ukraine's GDP grew by 2.3% in 2016, which exceeded expectations, but the blockade will have a negative impact on the mining, metallurgy and electricity sectors, and we expect that growth in 2017 will slow to 2%," the agency said.
However, already in 2018, GDP growth could increase to 3% due to improved consumer demand and investment.
The agency also predicts average inflation in 2017 at 11.2% compared with 14.9% in 2016. At the same time, Statistics Commitee registered an increase in consumer prices in 2016 by 12.4%. Fitch analysts also confirmed the long-term default rating of issuer of Ukraine in foreign currency at the level of "B-" (substantially insufficient level of creditworthiness).
"The ratings of Ukraine have weak liquidity, high debt burden and structural weaknesses associated with weak banking sector, institutional constraints, geopolitical and political risks," the agency said in a press release.