11:45 06.05.2016

IMF retains forecast for Ukraine's GDP growth in 2016

2 min read
IMF retains forecast for Ukraine's GDP growth in 2016

The International Monetary Fund (IMF) has retained its forecast for Ukraine's economy growth in 2016 at 1.5% and in 2017 at 2.5%, according to an economic survey of the central and southern states of Eastern Europe (CEE Outlook), posted on the fund's website.

"The positive dynamics of the economy over the year will be facilitated by a reduction of macroeconomic imbalances, as well as the weakening of the geopolitical situation," the report says.

Meanwhile, the IMF still notes a high importance of Ukraine's implementing a number of structural reforms.

"Critical for Ukraine is the fight against corruption, judicial reform, the reform of tax administration, as well as reforms at state-owned enterprises, including improving governance and reducing their dependence on the national budget," the IMF said.

Inflation estimates also remain unchanged at the level of 13% in 2016 and at 8.5% in 2017, while the current account balance at minus 2.6% of GDP and minus 2.3% of GDP respectively.

According to the review, a high level of inflation expected in the current year is due to the depreciation of the national currency.

In addition, the IMF forecasts a growth of Ukraine's gross external debt in 2016 to 152.3% of GDP from 136.4% of GDP and the reduction in 2017 to 140.3% of GDP.

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