Annual economic growth in Ukraine in 2011-2013 will make to about 4.3%, reads the June 2011 edition of the World Bank Global Economic Prospects, according to an UKRINFORM correspondent in the U.S.

In a paragraph dedicated to Europe and Central Asia, the WB experts say: "The countries of the Western part of the Commonwealth of Independent States (Belarus, Moldova and Ukraine) are projected to grow by an average of 4 percent between 2011 and 2013. However, these economies face significant potential downside risks, given their large current account deficits (Belarus and Moldova), and their relatively undiversified economies (and, in the case of Belarus, by its over-reliance on the Russian market for its exports). Ukraine is also susceptible to external shocks, notably from higher energy prices. Medium-term growth is expected to be constrained to around 4.3 percent because of weak productivity growth tied in part to the undiversified nature of the economy and lack of competition".

It is also noted in the report that in 2011 the Ukrainian economy will grow by 4.0% in 2012 - 4.5% in 2013 - 4.6%.

"Globally, GDP [1] is expected to grow 3.2 percent in 2011 before edging up to 3.6 percent in 2012," said Justin Yifu Lin, the World Bank's Chief Economist and Senior Vice President for Development Economics. "But further increases in already high oil and food prices could significantly curb economic growth and hurt the poor."

As referred to other economic indicators, the report mentioned Ukraine among the countries with low level of unemployment compared with the wider region, foreign direct investment (FDI) flows increased the most in Ukraine, reflecting the recapitalization of banks. However, the report says that the increase in energy prices for Ukraine could become a factor for inflation development.

UKRINFORM