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S&P expects 15% inflation and 7% GDP decrease in Ukraine in 2014

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S&P expects 15% inflation and 7% GDP decrease in Ukraine in 2014
Photo: Reuters

International credit-rating agency Standard & Poor’s forecasts 15% inflation and decrease of the Gross Domestic Product of Ukraine by 7% this year. Inflation in 2014 will amount to 15%, in 2015 – 8%, in 2016 – 7%, in 2017 – 6%, according to the S&P forecast.

At that, Ukraine’s economy will contract by 7% this year, in 2015 the GDP growth will be at zero, in 2016 and 2017 economy will grow by 3% and the GDP - by 4%.

Nominal GDP will amount to US $135 bn in 2014, US $144 bn in 2015, US $160 bn in 2016, US $182 bn in 2017, according to the experts.

It’s expected that national budget deficit will amount to 11% of the GDP this year, 7.5% of the GDP in 2015, 5% of the GDP in 2016, 4% of the GDP in 2017.

In addition, S&P is expecting that deficit of the current account of balance of payments in Ukraine will amount to 2.8% of the GDP this year, 4.6% of the GDP in 2015, 5.8% of the GDP in 2016, 5.9% of the GDP in 2017.

The total volume of the national debt will amount to 60.1% of the GDP, 2015 – 62.7% of the GDP, 2016 – 62.9% of the GDP, 2017 - 58.7% of the GDP, according to the experts.

As Capital reported, on July 12 Standard & Poor’s improved forecast of ratings for Ukraine from “negative” to “stable” as Ukraine is receiving a loan from the International Monetary Fund.

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