Ukraine’s GDP next year may grow by 2.9% with inflation at 10.9%. The Ministry of economic development and trade according to the consensus forecast on the official website.
According to the forecast, in 2016 GDP growth will be 1% with an inflation rate of 14%.
In 2018, the economy may expand by 3.6% with an inflation rate of 6.9%.
The consolidated budget deficit in 2016, 2017 and 2018 is expected to reach 60.1 billion UAH, 56,9 billion UAH and UAH 74.4 billion, respectively, while public and publicly guaranteed debt – UAH 1,812 trillion, trillion 1,930 UAH 2,063 trillion UAH, respectively.
The main domestic risk to the economy in the current year experts of the Ministry think the lack of speed of reforms, low solvency of the real sector and low credit activity of banks, external – loss tranche of the International monetary Fund, the deficit of foreign funding and shrinkage of possibilities of access to international capital markets.
In the second quarter of 2016, Ukraine’s GDP increased by 1.3% compared with the second quarter last year.
The Cabinet has previously predicted economic growth of 1.5% by the end of this year.
The international monetary Fund predicts GDP growth in Ukraine in 2016 by 1.5% with an inflation rate of 15.1 percent, the world Bank expects GDP growth of 1% when inflation is 15%, the Bank estimates the GDP growth for the year at 2%.