Ukraine will do well to get 4.5-4.7 growth – Presidential Secretariat

16:10, 18 November 2008
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Inflation in 2008 would likely hit 21-22 percent

Ukraine`s economy will do well to grow by 4.5-4.7 percent in 2008, let alone reach a government target of 6.8 percent, and will contract next year, President Viktor Yushchenko`s main economic adviser said on Tuesday, Reuters reported.

Oleksander Shlapak told a news conference inflation in 2008 would likely hit 21-22 percent compared to the government`s target of 15.9 percent.

`I believe that it will be good if Ukraine finishes the year with a growth figure of 4.5-4.7 percent of gross domestic produce,` Shlapak said. `Nextyear, unfortunately, we will have a recession, ranging from zero growth to minus

2 percent.`

The government target for next year stands at 6.0 percent. The International Monetary Fund, which this month agreed to grant Ukraine a $16.4 billion loan, forecasts 2008 growth at 6 percent and a contraction next year of 3 percent.

Official data shows year-on-year growth over the first 10 months of this year was 5.8 percent of GDP.

On inflation, Shlapak said: `According to my forecast, this year we will have inflation of 21-22 percent.`

The IMF has predicted inflation of 25.5 percent this year. Cumulative price rises over 10 months have already reached 18 percent. Inflation in 2007 stood at 16.6 percent.

Reuters via Hemscott

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