New figures show Ukrainian economy shrank 6.8% in 2014
The IMF has warned any return to growth in 2016 depends on success of Minsk ceasefire agreement
The Ukrainian economy shrank by almost 15 percent in the fourth quarter of 2014, according to the country’s state statistics authority. Russia’s intervention in Ukraine has taken an especially heavy financial toll on the country as trade between Moscow and Kyiv slowed. The economy contracted 6.8 percent overall last year. The figures do not take into account data from the Russian-occupied Ukrainian territory of Crimea, Sevastopol, and part of the Donbas conflict zone.
The International Monetary Fund forecasts the Ukrainian economy will contract by 5.5 percent this year, before returning to growth in 2016. However the Washington-based lender has warned that efforts to restore financial stability face ‘exceptionally high’ risks if fighting in the country’s east resumes to previous levels. The IMF is among several international lenders who have stepped in to help Ukraine, as the Central Bank fights soaring inflation, dwindling foreign currency reserves and high capital flight.