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S&P worsens prediction of Ukraine’s GDP growth in 2018

The projected inflation increased from 8,9% up to 10,3%
19:48, 22 October 2018

www.obozrevatel.com

The international rating agency Standard&Poor's has worsened the prediction of the growth of the Ukrainian GDP from 3,1% to 3,0%, while the inflation’s growth increased from 8,9% up to 10,3% in 2018 as Ukrainian News reported.

In 2019, the GDP growth by 2,5% is expected with the inflation of 7,5%, 3,0% in 2020 and 2021 with the inflation of 7%.

Related: Ukraine's international reserves reduce by 3,5% in September, - National Bank

“The level of per capita income remains to be law. Despite the growth of the nominal GDP, averagely by 20% starting from 2016, the GDP per capita ($2,800 in 2018) is only 70% from rating in 2013. Ukraine is the second state after Tadzhikistan with the lowest index of the GDP per capita among CIS and European countries,” the message said.

“According to our estimations, the growth GDP rate will stay on the level of 2,9% during the time-horizon of our prediction (up to 2021) and it will be supported by the domestic demand. At the same time, in terms of lack of accelerated reforms, such growth rate not likely to promote the convergence of the incomes level of the Ukrainian population with the index of the wealth of the less economically developed EU countries.”

Related: Ukraine could keep injecting funds into state-owned banks without improving governance – EBRD

As we reported the World Bank has worsened the prediction on the growth of the GDP of Ukraine in 2018 from 3,5% to 3,3%.

Earlier President of Ukraine Petro Poroshenko said at the international economic forum in Kharkiv that he expects growth of gross domestic product in 2018 to 4%.

Also, in 5 years, GDP per capita in Ukraine will grow by 1.5 times, analysts of the International Monetary Fund calculated. The growth of GDP, according to analysts, is possible due to the reform of legislation, the judiciary, and the land market.

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