Fitch Ratings has downgraded its forecast for Ukraine`s economic growth in 2016, lowering the GDP growth rate to 1% from the previously announced 2%.
”Fitch expects only moderate economic recovery in Ukraine (we forecast GDP growth of 1% in 2016 with medium-term growth of 2%),” a Fitch statement said.
Fitch earlier lowered its economic growth forecast for Ukraine to 2% from 3.9% due to restraining factors, such as the lack of exports to Russia, damages related to the Donbas war, lower prices in key commodity markets and the weak financial sector.
Ukraine`s government forecasts that Ukraine`s economy may grow by 1.5% in 2016.
The country`s key creditor, the International Monday Fund, projects GDP growth in Ukraine in 2016 at 1.5% amid 15.1% inflation. The World Bank expects a 1% increase in GDP amid 15% inflation, while the European Bank for Reconstruction and Development predicts 2% GDP growth in Ukraine.