EBRD downgrades outlook for Ukraine's GDP growth in 2013

The European Bank for Reconstruction and Development (EBRD) has downgraded its outlook for Ukraine's GDP growth in 2013 from 2.5% to 1%, the EBRD has said in a survey of regional economic prospects.

«A slight increase of 1% is possible in Ukraine after stagnation in 2012,» the bank said.

The EBRD said that such a result had been caused by a slowdown in the Ukrainian economy in the last two quarters of 2012, in particular, a speedy decline in industrial production in December. The bank also believes that Ukraine's economy is very much exposed to the euro zone, and developments in the EU will remain important for the country's growth and economic stability.

In 2014 and subsequent years, growth may resume at a faster pace. However, stress in the EBRD is very important that the National Bank of Ukraine has conducted a coordinated monetary policy according to the recommendations of the International Monetary Fund.

According to the EBRD, growth could resume at a quicker pace in 2014 and in subsequent years, but it is very important that the National Bank of Ukraine (NBU) conduct a coordinated monetary policy in accordance with the recommendations of the International Monetary Fund (IMF).

As reported, Ukrainian Prime Minister Mykola Azarov said at a meeting with foreign investors on January 18 said that GDP growth in 2013 would stand at 3-3.5%. Ukraine's state budget for 2013 envisages GDP growth of 3.4%.

On January 15, the World Bank downgraded its outlook on the growth of the Ukrainian economy in 2013 from 3.8% to 2.2%.

Adapted from Ukrinform