News from Ukraine: Fitch downgrades forecast for Ukraine's economy growth

13:16 Aug. 9, 2016

Fitch downgrades forecast for Ukraine's economy growth

People sell objects at a city flea market in Ukraine's capital Kiev, on Friday, Aug. 28, 2015 (AP Photo)

Ukraine's government expects the country's economy to grow to about 1.5% in 2016

Fitch Ratings international rating agency downgrades their forecast for the Ukrainian economy growth in 2016 by 1%. Previously they forecast a 25 growth.

This is reported by the agency on their official website.

"Fitch expects only a moderate recovery of Ukraine's economy. We forecast 1% GDP growth in 2016", the statement reads.

Indicators of Ukraine's economic growth in the medium term are also downgraded - to 2%.

"We forecast 2% GDP growth over the medium term", Fitch representatives said.

Read also Fitch downgrades Kyiv's rating to default level

Earlier, in May, Fitch's also downgraded its forecast for Ukraine's economic growth to 2%, as compared to their earlier forecasts of 3.9%, due to limiting factors - loss incurred in export trade with Russia, war casualties in eastern Ukraine, low prices for key commodity markets and weak financial sector.

The government forecasts Ukraine's economy will grow to about 1.5% in 2016.

The International Monetary Fund (IMF), Ukraine's key creditor, forecasts Ukraine's economic growth following the results of 2016, that sums up to 1.5% at the inflation rate of 15,1%. IMF also maintained its 2017 forecast that claims 2.5% GDP growth at the 11% inflation rate.

The World Bank expects 1% GDP growth with a 15% inflation rate. The EBRD (European Bank for Reconstruction and Development) forecasts the 2% GDP growth rate in 2016. 

Read also Ukraine surpasses its pre-recession peak – World Bank Group

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