The Cabinet of Ministers has put in the draft state budget 2014 realistic macroeconomic indicators. With inflation of 8 percent, the economy will grow to 3 percent, President of the Ukrainian Analytical Center Oleksandr Okhrimenko told Ukrinform on Wednesday.

"Overall, the performance of the state budget 2014 reflects the general expectation of economic growth. If the government provides inflation at 8 percent, it is really possible to achieve GDP growth of 3 percent," Okhrimenko emphasized.

According to him, this year it is deflation that affects the GDP dynamics. The analyst calls on not to perceive inflation as an evil, but rather as a factor stimulating the economy.

Okhrimenko said that inflation growth to 8 percent in 2014 can be due to higher wages and pensions, as well as an active currency sale by citizens after the introduction of currency tax.

"This should increase the amount of money held by people and, in turn, will stimulate the growth of inflation," the analyst noted.

The expert believes that the budget deficit in 2014 is quite possible to be kept at 2.7 percent of GDP due to the VAT refund through treasury bills, and transfer pricing.

Ukrinform