Government worsens inflation forecast for 2018-2020

The Cabinet of Ministers of Ukraine during the development of the draft law on the national budget of Ukraine for 2018 approved amendments to the main forecast indicators of economic and social development for 2018-2020, according to the website of the Ministry of Economic Development and Trade.

According to the ministry, the consumer price index will increase by 9% in 2018, by 6.5% in 2019 and by 5% in 2020.

Earlier First Deputy Prime Minister, Minister of Economic Development and Trade Stepan Kubiv presented the forecast, according to which inflation in 2018 was expected to slow down to 7%, in 2019 to 5.9% and in 2020 to 5%. By the end of this year, inflation is projected at 11.2%.

Data on the projected nominal GDP after changes in inflation expectations are not available on the website of the ministry. In the presentation presented the day before, nominal GDP was forecasted at the level of UAH 3.448 trillion in 2018, UAH 3.611 trillion in 2019 and UAH 3.981 trillion in 2020.

The government also downgraded the projected wage growth in 2018 to 9.6% from 10.9%, indicated in Kubiv's presentation.