Goesta Ljungman, the International Monetary Fund (IMF) Resident Representative in Ukraine, forecasts annual gross domestic product (GDP) growth in Ukraine would be 2 percentage points (p.p.) higher if not corruption.
"Our assessment of the cost of corruption is that it reduces GDP growth by about 2% per year compared to European countries. So, if Ukraine were [able] to bring down the level of corruption to average European levels, then growth would not be 3%, it would be 5%. That would change the growth potential," he said in Kyiv on November 13 while presenting an update of the European Regional Economic Outlook and outlining macroeconomic trends for the Ukrainian economy.
As UNIAN reported earlier, the National Bank forecasts a 3.4% increase in Ukraine's GDP in 2018 amid 8.9% inflation.
The Ukrainian government expects economic growth at 3.2% in 2018 amid 9.9% inflation.
The International Monetary Fund (IMF) has improved the forecast of Ukraine's economic growth in 2018 from 3.2% to 3.5% compared with its April outlook.
At the same time, the IMF downgraded the forecast of the country's economic growth in 2019 to 2.7% from 3.3% it projected earlier.