World Bank: Ukraine’s economy contracted by 10%, 1% increase expected in 2016

Source : 112 Ukraine

“Currently we see first signs of stability”, - representative of the World Bank
12:31, 1 April 2016

The World Bank estimated the drop of Ukraine’s GDP at 10% in 2015. Although, a 1% increase of economy is expected in 2016, informed the Director of the World Bank for Ukraine, Belarus and Moldova Qimiao Fan during presentation of the new economic overview and macroeconomic forecast for Ukraine.

“Currently we observe first signs of stabilization, which started at the end of last year. We forecast that Ukraine’s GDP will increase by 1% in 2016 and by 2% in 2017”, - Fan said.

He also noted that in 2015 Ukraine’s economy contracted by 10% due to unprecedented shocks, impact of military conflict in eastern Ukraine, fall in raw materials in global markets, fiscal deficit and inflation.

Fitch Ratings forecasts economic growth in Ukraine at the level of 1%, inflation at 17%, hryvna exchange rate – 25 hryvnas / 1 US dollar, it is said in the Agency’s report.

Moody’s rating agency forecasts a 2% economic growth for Ukraine in 2016 in case reforms continue.

Earlier, the National Bank of Ukraine announced that it expects a 3% raise of the real GDP.

International Monetary Fund forecasts a 2% GDP increase in 2016 and inflation at the level of 12% in Ukraine. According to the World Bank, Ukraine’s GDP will go up by 1% in 2016. 

Ministry of Finance of Ukraine forecasts that GDP will go up by 3%, inflation will be at the level of 8,1% in 2017.

Related: World Bank forecasts Ukrainian GDP decline for 12% in 2015

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