EBRD confirmed outlook for Ukraine
Ukrainian economy is expected to grow only 2.5% this year according to a recent EBRD report, according to KyivWeekly.
This index can become the worst for all countries in Eastern Europe and Caucasus (average tempo of growth in the region is 2.9%). However, the fact of confirmation of the previous forecasts is positive, because lately international organizations have only worsened their rating for Ukraine, KW wrote.
The EBRD expect similar economic growth only in Belarus. Even slower growth in economy is expected in the South-Eastern European countries (on average by 1%), Central Europe and Baltic countries (by 1.6%). Reduction of GDP is expected in Slovenia (by 2%), Hungary (by 1%) and Croatia (by 0.6%). Higher tempo of growth is forecast in Russia (by 4.2%) and Central Asia (by 6%). Mongolia and Turkmenistan will be the leaders with 14% and 10% growth, respectively.
In 2013 the EBRD forecasts a 4% growth of Ukraine’s economy, while the average growth rate in the provinces will be 3.7%. Evaluating the prospects of the Ukrainian economy economists at the EBRD note that instead of a decline in the export demand for products of the metallurgy and engineering sectors, growth in the ag sector will be negative due to the winter cold and the completion of infrastructure projects in time for EURO 2012. Banks are also hoping that economic revival in the Euro zone will have a positive impact on Ukraine’s GDP.