: World Bank estimates Ukraine's economic drop by 10%, forecasts 1% growth in 2016

16:41 Apr. 1, 2016

World Bank estimates Ukraine's economic drop by 10%, forecasts 1% growth in 2016

Qimiao Fan, World Bank Country Director for Belarus, Moldova, and Ukraine (L) attends a signing agreement with Ukraine's Minister of Finance Natalia Yaresko (R) in Kiev, Ukraine on September 16, 2015 (Getty Images)

Ukraine's economy contracted due to ongoing hostilities in country's east, fiscal deficit and inflation

The World Bank has estimated that Ukraine's GDP contracted by 10% in 2015, and has maintained its forecast for GDP growth in Ukraine in 2016 at 1%, said Qimiao Fan, World Bank Country Director for Belarus, Moldova, and Ukraine, during the presentation of a new economic review and macroeconomic forecast for Ukraine.

He also noted that the contraction of Ukraine's economy and GDP by 10% last year was due to the unprecedented shocks associated with ongoing hostilities in Ukraine's east, decline in prices on the global commodity markets, as well as the fiscal deficit and inflation.

 "Political crisis poses a serious threat to the economic recovery and further economic reforms. It is important, in our opinion, so that this political crisis is resolved as soon as possible," The official say.

Read also Putin advises Russian businessmen against selling Ukrainian assets

Qimiao Fan compared Ukraine to a cyclist moving uphill, who must constantly pedal to keep from falling.

Reporting by UNIAN

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