The World Bank again downgraded its forecast for the economy of Ukraine

13 January 2015 12:33  1389259 090220
The World Bank again downgraded its forecast for the economy of Ukraine

The World Bank has lowered the forecast for the decline of Ukraine's GDP in 2014 to 8.2% in comparison with its latest forecast of 8% in October.

This is stated in the publication of the bank "Global Economic Prospects" on Tuesday, the "Interfax-Ukraine" reported.


They downgraded forecast of the Ukraine's GDP decline in 2015 to 2.3% from 1%, estimating the rate of recovery in 2016-2017 respectively at 3.5% and 3.8%.

According to the bank, the current account deficit in the balance of payments of Ukraine in 2014-2015 will amount to 2.7% of GDP, in 2016 it will slightly increase to 2.9% of GDP, and the next year will return to the level of 2.7% of GDP.

The World Bank also points to the existing significant deficit due to problems with the collection of revenues and increased security-related spending.

It was reported that in October 2014 the bank downgraded the forecast of GDP decline in 2014 from 5% to 8%, and changed the forecast of 2.5% growth in 2015 to the forecast of 1% decline.

As you know, Ukraine budget for 2015 is based on the conservative scenario involving the 4.3% decline in GDP with inflation of 13.1%.

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