: :inin Kyiv (EET)

Ukraine`s Cabinet projects at least 1% GDP growth in 2016

First Deputy Prime Minister and Minister of Economic Development and Trade Stepan Kubiv has told UNIAN in an exclusive interview that Ukraine`s Cabinet of Ministers has projected an economic growth of at least 1% in 2016 and 3% in 2017.

”We see a gradual intensification of investment and consumer demand growth. This positive effect is due to macroeconomic stabilization, a step-by-step improvement in the business climate, increased efficiency of management of the economy`s public sector and the adaptation of national laws to EU legislation,” Kubiv stated.

”Unfortunately, there are negative factors. The growth and the positive effect are being limited by trade and transit restrictions imposed by Russia,” he added.

He, however, confirmed that, in general, macroeconomic dynamics coincided with the Ukrainian government`s estimates on which the forecast is based on.

”So we expect further GDP growth by 1% in 2016 and by 3% next year,” he said.

As UNIAN reported earlier, Ukraine`s GDP in the first quarter of 2016 decreased by 0.7% compared with the previous quarter due to the seasonal factor. However, compared with the first quarter of 2015, the indicator grew by 0.1%.

Inflation in Ukraine in May slowed to 0.1% compared with the previous month, while it was up 7.5% year-on-year.

The International Monetary Fund, Ukraine`s key creditor, has forecast Ukraine`s GDP growth in 2016 at 1.5% amid 15.1% inflation, while the World Bank has projected GDP growth at 1% amid 15% inflation.

According to an expert consensus forecast compiled by UNIAN, Ukraine`s GDP by the end of 2016 could reach 1% amid 19% inflation.


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