World Bank downgrades outlook for Ukraine's GDP growth in 2012

10:54, 20 July 2012
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The World Bank has downgraded its outlook for the growth of the Ukrainian economy in 2012 from 2.5 percent to 2 percent, according to Xinhua.

"Economic activity in Ukraine has slowed down due to lower external demand and the euro zone crisis," World Bank Kiev-based Senior Economist Ruslan Piontkivsky told reporters here Thursday.

World Bank Country Director for Ukraine, Belarus and Moldova Qimiao Fan noted that Ukraine highly depends on the economic situation of the euro zone.

"The euro zone crisis constitutes a serious danger to Ukraine," he said.

World Bank experts suggest that the implementation of structural reforms will accelerate Ukraine`s economic development.

Due to the World Bank outlook, the pace of economic growth in Ukraine is projected at 2 percent in 2012, 3.5 percent in 2013, compared to the previously estimated 4 percent, and 4 percent in 2014.

The World Bank improved the estimation of price dynamics in the current year to 6.1 percent from 9.4 percent.

According to Prime Minister Mykola Azarov, Ukraine`s gross domestic product grew to 2.5 percent during the first half of 2012.

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