EBRD expects 2% growth of Ukraine's economy in 2016-2017

The European Bank for Reconstruction and Development (EBRD) has confirmed its forecast for the growth of the Ukrainian economy by 2% this year and expects it will remain at the same level in 2017.

"Ukraine's economy is expected to return to growth in 2016 against the background of the previous macroeconomic regulation and rebalancing, supported by structural reforms, although investors' confidence remains weak," reads a review of economic prospects for the region the EBRD operates in.

The bank said the country's economy reached the lowest level during the second half of 2015. In general, over the past year it fell by 9.9%, a year ago by 6.6%, and in U.S. dollar terms Ukraine's economy halved, from about $180 billion in 2013 to $90 billion in 2015.

The EBRD noted the dependence of net private capital inflows to Ukraine with the resumption of the IMF program, political stability and keeping the pace of reforms in the key areas such as banking and energy, privatization, rule of law and administration of justice.

The bank also noted the importance of continuation of international funding for the country to further increase international reserves.