WB forecasts 4.5% growth in Ukraine`s GDP

11:41, 06 December 2006
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And 10.7% inflation in 2007

According to the Kommersant-Ukraina, World Bank experts forecast a 4.5 percent growth in Ukraine`s GDP and yearly cumulative inflation at 10.7 percent in 2007, according to Ukrinform.

      This forecast is stated in the World Bank`s document, entitled "Ukraine" Economic Update."

      The document states risks, which may have adverse effects on the Ukrainian economy`s performance, slight raises in metal prices on the global market, decelerated rates of growth in consumer demand (by 3 percent to 4 percent).

      As the WB experts warn, lower Ukrainian consumers` activity may brake food industries` development.

      Ukraine`s economic performance in 2006 is stated by the document as having exceeded the World Bank`s forecast, despite the raises in fuel prices, which were rather unexpected.

      By October 2006 the growth in Ukraine`s GDP reached 6.5 percent, and this rate is expected to be kept throughout the remainder of 2006.

      In the World Bank experts` opinion, the Ukrainian government`s reforms will remain anything but transparent.

      According to the document, in 2007 the global metal market`s conjuncture is likely to prove unfavorable as prices for metal are expected to increase by just around 5 percent.

      Besides, the growth in solvent consumer demand will shrink from two-digit figures to 3 percent to 4 percent in two to three years to come.

      Nevertheless, as the WB experts contend, Ukrainian industries will preserve their access to finances and investments in energy-saving technologies.

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