: Ukraine surpasses its pre-recession peak – World Bank Group

13:46 Jun. 8, 2016

Ukraine surpasses its pre-recession peak – World Bank Group

An employee walks outside the World Bank headquarters May 8, 2007 in Washington, DC. (Getty Images)

GDP growth expected, the organization claims

Ukrainian economy has overpassed its recession peak and resumed its positive dynamics, according to the World Bank Group report published on June 7.

Read also Ukraine GDP shows slight rise in 1Q - State Statistics Service

The organization's analysts claim that Ukraine's GDP grew by 0.1% in the first quarter of 2016. Growth indicators are mostly observed in Ukraine's western regions.

‘Ukraine's western regions are not directly affected by the conflict, and they are restoring. However, their exports and imports are twice lower than those in 2012, and they remain weak. The credit capacity of the banking sector is severely limited,' the report states.

The World Bank Group predicts 1% GDP growth in 2016, 2% GDP growth in 2017, and 3% GDP growth in 2018 for Ukraine's economy.

The organization says Russia's GDP will decline by 1.2%. In 18 months, the Eurozone GDP is predicted to decrease by 1.6%, while the Chinese economy is expected to grow up to 6.7% this year.

Read also RFE/RL: Russia's economy shows signs of stabilization in first quarter

As reported previously, the International Monetary Fund 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.

 

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