Fitch re-states 3.2% economic growth in Ukraine in 2018

Fitch Ratings has re-stated the forecast of Ukraine's economic growth in 2018 at 3.2% and projected the acceleration of the country's economy by 3.7% in 2019.

"According to Fitch's recently re-stated macro forecast, Ukraine's economy returned to growth in 2016-2017 after severe contractions in 2014-2015 and is projected to grow 3.2-3.7% y-o-y [year-over-year] in 2018-2019," it said.

Read alsoFitch names terms, conditions for Ukraine to get new IMF tranche"In 2017 the Ukrainian economy continued its mild recovery with an estimated GDP growth of 2%," Fitch Ratings said.

According to the agency, the recovery of economic activity is likely to be gradual, driven by domestic demand.

"The unresolved conflict in eastern Ukraine is likely to weigh heavily on the recovery prospects, while lack of access to Donetsk and Luhansk's assets will continue to negatively impact performance indicators," it said.

It is also noted that the Ukrainian government is under pressure of a complex reform program, which is a condition for the International Monetary Fund to provide external financing.

As UNIAN reported earlier, the State Statistics Service of Ukraine has revised upwards its estimate of Ukraine's real GDP growth in 2017 from 2.2% to 2.5%.

The Cabinet of Ministers expects economic growth in 2018 at 3%, while the IMF forecasts an increase by 3-3.5%.