European Commission projects Ukraine GDP growth by 2% in 2016, 3% in 2017
European Commission (EC) Vice President for the Euro and Social Dialogue Valdis Dombrovskis says that the EC projects that Ukraine's GDP may grow by 2% in 2016 and by another 3% in 2017.
"We expect the economy to return to growth of 1-2% this year and further pick up speed next year," he said at the 13th Yalta European Strategy Annual Meeting in Kyiv on Friday, September 16.
In his words, the economic growth next year may be as high as 3%.
"In the end, the effectiveness of our economic support is conditional on Ukraine's own efforts. Success can only come from continued and credible reforms within Ukraine," he said.
"Inflation is rapidly decreasing; the budget deficit targets are met; and international reserves have increased. But there is a lot of work left to do. Indeed, the biggest test lies within Ukraine," he added.
As UNIAN reported, Ukraine's GDP in the second quarter of 2016 grew by 0.6% from the first quarter of 2016 with due regard for a seasonal factor, after a 0.7% decrease in the first quarter from the previous quarter.
Read alsoNSDC approves 2017 defense budget at no less than 5% of GDP Ukraine's GDP growth in the second quarter of 2016 accelerated to 1.3% year-over-year, after a 0.1% increase in the first quarter of 2016 from the first quarter of 2015.
The National Bank of Ukraine projects the country's GDP may increase by 1.1% in 2016 and further by 3% in 2017. The NBU forecasts inflation will be 12% in 2016 and 8% in 2017.
Ukraine's key lender, the International Monetary Fund, predicts 1.5% GDP growth in Ukraine in 2016 amid 15.1% inflation. The World Bank in turn projects 1% GDP growth with 15% inflation.
A consensus forecast given by experts polled by UNIAN says that Ukraine may see a 1% increase in GDP in 2016 while inflation may hit as high as 19%.
Ukraine's Cabinet of Ministers did not change its forecast for Ukrainian economic growth in 2017, keeping it at 3% amid 8.1% inflation and 8.7% unemployment. The Ukrainian government used these indicators as basic ones for the formation of a draft national budget for 2017.