13:37 01.06.2015

IMF worsens Ukraine's GDP decline to 9% in 2015

2 min read
IMF worsens Ukraine's GDP decline to 9% in 2015

The International Monetary Fund (IMF) has revised down Ukraine's GDP growth projections for 2015 to 9%, the IMF mission said in a press release.

The World Economic Outlook published in the middle of April 2015 by meetings of the International Monetary Fund and the World Bank, Ukraine's GDP decline in 2015 was projected at 5.5%. In 2016, it was forecast Ukraine would see a 2% increase in its GDP.

The IMF said that the unresolved conflict in the East took a heavier than expected toll on the economy in the first quarter of 2015. The IMF mission revised down growth projections for 2015 to 9%.

The IMF projects end-year inflation at 46%.

"Inflation was mostly driven by one-off pass-through effects of the large exchange rate depreciation in February as well as the needed energy price increases," reads the press release.

"In recent months, signs that economic stability is gradually taking hold are steadily emerging. The foreign exchange market has remained broadly stable. Gross international reserves, although still very low, have increased to $9.6 billion at end-April. Banks’ deposits in domestic currency have been recovering. The budget outturn in the first months of 2015 was stronger than expected, partly due to temporary factors," the IMF mission said.

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