The National Bank of Ukraine (NBU) has predicted that Ukraine's GDP will fall by 7.5% in 2015, with inflation being 30%, while in 2016 GDP will grow by 3% and inflation will fall to 13-14%.

According to an NBU report issued on Monday, the macroeconomic forecast was approved by the NBU's monetary policy committee at a meeting held on March 25-26.

"In 2015, GDP will fall by 7.5% due to the effect of the statistics base," reads the report.

The NBU said that in Q1, 2015, GDP continued to fall compared to the previous quarter due to the continuation of the military conflict.

"Only in Q2, 2015 it is expected that economic growth will start to gradually be restored, first of all thanks to net exports and the loading of vacant facilities," the NBU said.

The NBU said that growth in investment demand will start in H2, 2015 thanks to the increasing effect of imports replacement and the restoration of destroyed infrastructure in eastern Ukraine. Due to the weakening of the hryvnia in the previous periods, imports will remain weak.

The NBU said that the macroeconomic forecast for 2015-2016 takes into account the strict implementation of the obligations set in the International Monetary Fund's new Extended Fund Facility (EFF), in particular, budget reform, and reforms in the financial, energy and economic sectors.

The NBU said that the government's optimistic micro-scenario could be realized, and that it foresees a GDP fall of 5.5% with inflation of 27%. The NBU also said that real GDP in annual terms could resume growth in Q4, 2015.