The International Monetary Fund (IMF) has projected the growth of the Ukrainian economy in 2013 at 0.4% and in 2014 at 1.5%.

This is stated in the IMF's October report "World Economic Outlook," which was released on Tuesday, Ukrinform reported.

Ukraine's GDP growth is projected at 0.4% in 2013 and at 1.5% in 2014, according to a respective table in the document.

The fund's experts noted that Ukraine had been "in recession since mid-2012." They also believe that in 2013-2014 "activity will be held back by weak exports, political uncertainty, and tight monetary conditions in defense of an exchange rate under pressure because of the economy's twin deficits."

According to experts, the unemployment rate in Ukraine this year and next year will stand at 8%, inflation will remain low (0% in 2013, and 1.9% in 2014), and the current account deficit will be 7.3% of GDP in 2013 and 7.4% next year.

The IMF believes that "Ukraine would benefit from a more flexible exchange rate regime, tighter fiscal policy, an increase in domestic gas and heating tariffs, and a restart of structural reforms."

As reported, in its April report the IMF predicted GDP growth in Ukraine at 0% in 2013 and at 2.8% in 2014.


 

ukrinform