IMF confirms forecast for Ukraine's GDP growth as 2% in 2016 after 5.5% fall in 2015

The fall of Ukraine's real gross domestic product (GDP) is expected to slow from 6.8% in 2014 to 5.5% in 2015, and it should recover in 2016 when it will rise by 2%, according to the World Economic Outlook (WEO), published by the International Monetary Fund (IMF).

"Ukraine's economy is expected to bottom out in 2015 as activity stabilizes with the beginning of reconstruction work, but the economy is still projected to contract by 5.5%," reads the report.

This forecast corresponds to EFF program data, as opposed to the views of many experts who worsened their predications for the Ukrainian economy since the implementation of the program.

The IMF said that the decline reflects the economic consequences of the conflict in eastern Ukraine, but the deepening of recession is also due to pressure on the hryvnia, which increased substantially since last October last year.

According to the WEO, average annual inflation in Ukraine this year will accelerate to 33.5% from 12.1% a year earlier, and next year it will slow to 10.6%.

The IMF also expects the reduction of the current account deficit from 4% of GDP last year to 1.4% of GDP this year and 1.3% of GDP next year.

According to the outlook, the unemployment rate this year will reach a peak of 11.5% from 10.5% last year, and next year it will fall to 11%.

The fund added that it was crucial to build up reserves and tighten Ukraine's tax and fiscal positions.