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EBRD downgrades forecast: Ukrainian economy to shrink by 7.5% in 2015
15.05.2015 11:08 "Agro Perspectiva" (Kyiv) —
The EBRD (European Bank for Reconstruction and Development) has downgraded its forecast of the fall of Ukrainian economy to 7.5%, down against 5% predicted in Jan 2015, UNIAN says referring to the EBRD report.
It is to be admitted, report also forecasts the Ukrainian economy will face a gradual recovery, with 3% GDP growth, in 2016.
«Today, we expect that the GDP in Ukraine will decline by 7.5% in 2015. It means that the previous forecast made in Jan 2015, when we expected the reduction in economic growth by 5%, has been worsened,» the report says.
As to the EBRD, in 2015 the Ukrainian economy will face a pressure due to the destabilization in the eastern regions, austerity, jumps in energy tariffs and the continued reduction in lending, as well as the depreciation of the national currency.
«If the security situation does not deteriorate and the IMF program continues to be implemented, and other significant risks don’t materialize, Ukraine will see a recovery of economic growth by about 3% in 2016. More rapid and successful reforms and easing of the geopolitical risks could improve the forecast of growth,» the report reads.
It is to be admitted, the Ukrainian key creditor, the International Monetary Fund, has confirmed its previously published forecast of a reduction in the size of Ukraine’s economy by 5.5% in 2015.
The decline of GDP in Ukraine in 2014 compared with the previous year, without taking into account the annexed territory of Crimea and part of the Donbas conflict zone, amounted to 6.8%.
In 2014, the nominal GDP upon whole amounted to UAH1.567 trillion (in the prices of the previous year it amounted to UAH1.365 trillion).
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