The World Bank downgraded the outlook for economic decline in Ukraine
The World Bank lowered its estimate of the fall of Ukraine’s GDP in 2014 to 8.2% in comparison with its latest estimate of 8% in October, according to the publication «Global Economic Prospects».
«Ukraine’s economy is facing the prospect of high level of uncertainty in the baseline scenario which assumes no further escalation expected slowdown in 2015 and the recovery in the 2016-17 year,» – experts said.
They worsened prognosis reduce Ukraine’s GDP in 2015 to 2.3% from 1% estimating the rate of economic recovery in 2016-2017, respectively, 3.5% and 3.8%.
The Bank estimates that the current account deficit of balance of payments of Ukraine in 2014-2015 will be 2.7% of GDP in 2016 will increase slightly to 2.9% of GDP and next year will return to the level of 2.7% of GDP. Its experts say the pressure on the balance of payments is a high demand for refinancing foreign debt payments.
WB also points to the continuing large budget deficit due to problems with revenue collection and increasing security-related spending.
It was reported that the bank in October 2014 worsened the assessment fall Ukraine’s GDP in 2014 from 5% to 8%, and the forecast growth in 2015 of 2.5% has replaced its forecast a decline of 1%.
Note, the state budget of Ukraine for 2015 is built on conservative scenario of the situation providing for the decline in GDP of 4.3% with an inflation rate of 13.1%.
The bank’s analysts predict the growth of the economy of Ukraine in 2016-17 years in the absence of an escalation of the situation in the country.
