Valeriy Lytvytsky, head of the group of advisers to the National Bank governor, believes the government's inflation forecast at 8.9% at end-2011 and the rate of the national currency of UAH 7.95/USD for the next year 1 is realistic, he told reporters on Thursday.

"We believe that such calculations of the government are correct, and we hope that we will support them," The inflation rate of 8.9%, I think, is achievable," Lytvytsky said.

At the same time, the expert noted that the realism of the forecasts of the government will depend on its policy aimed at retaining the budget deficit below 3% of GDP, reaching agreements on prices of imported gas for the next year, efficient tariff and excise policy, preserving the existing level of interaction between the government and the NBU, and, in general, creating conditions for sustainable economic growth.

In addition, according to Lytvytsky, an important factor influencing the dynamics of major macroeconomic indicators will be Ukraine's cooperation with the International Monetary Fund.

As UKRINFORM reported, the Cabinet on December 8 approved the draft state budget for 2011, and on December 10 the document is to be submitted to parliament.

The state budget is calculated on the basis of the following estimated macroeconomic indicators: nominal GDP - UAH 1.253 trillion (USD 1 - UAH 7.95), GDP growth - 4.5%, inflation rate - 8.9%, industrial producer price index - 11.3%, wage fund - UAH 398 billion, national currency rate - UAH 7.95/USD 1 and budget deficit - 3.8% of GDP.

UKRINFORM