IMF changes inflation forecast for Ukraine

The International Monetary Fund has estimated that inflation will be around 13% by year-end, according to the organization`s latest report published on its website.

Ukraine`s key creditor, the IMF, has reported that the country`s GDP is projected to grow by 1.5% in 2016.”

At the same time, the Fund improved the inflation forecast from the earlier 15.1% to 13%.

The economic activity will be accompanied by a weakening of financial pressure, growing domestic demand, as well as the confidence of investors and revenue growth, according to the report.

At the same time, external factors will still be able to affect the upward trend, therefore the country will depend largely on the volume of domestic demand, the IMF experts believe.

According to IMF estimates, the inflation rate will be around 13% by the end of 2016, to be mostly affected by the increasing tariffs.

The Fund noted that the turn from the drop of the economy to its growth is Ukraine`s key achievement.

The IMF calls on the Ukrainian authorities to continue strengthening the system of public finances and purging the banking system, conduct a pension reform, enhance tax administration, and improve the business climate.

Stressing that the political agenda is quite ambitious, the IMF emphasizes that it needs to be timely fulfilled.

As UNIAN reported earlier, the IMF approved the Extended Fund Facility (EFF) program for Ukraine, worth $17.5 billion, in March 2015 for a four-year period. Last year, Ukraine received two tranches of $5 billion and $1.7 billion, respectively. This year, the IMF allocated its third tranche for Ukraine in the amount of $1 billion.

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