Investment Capital Ukraine (ICU, Kyiv) has downgraded the forecast for Ukraine's real GDP growth for 2011 to 4% from 4.5%, in anticipation of some recession in the economy.
The head of the analytical subdivision at the ICU, Oleksandr Valchishen, said that the company expects the cooling of the economy to continue next year, and therefore the forecast of the GDP growth for this period was downgraded to 3.5% from 5.2%.
Commenting on the revised estimates, the expert said that they are primarily associated with the economic downturn in the countries that are the major trading partners of Ukraine, as well as the decreased activity on the global financial markets.
"Direct and portfolio investors are very cautious about investing in developing countries with low ratings, which include Ukraine," the expert said.
According to the ICU's estimates, the volume of direct and portfolio investment in Ukraine over the current year will amount to $6 billion and grow to $7.4 billion next year.
