World Bank: Ukrainian economy will shrink by 12 pct. this year
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A man at a currency exchange office in Kyiv, Ukraine. EFE / File
Kyiv, Sep 22 (EFE).- The Ukrainian economy will shrink 12 percent this year and suffer inflation of 50.8 percent, according to a macroeconomic forecast published on Tuesday by the World Bank.
The report from the international organization said it expects the GDP of Ukraine to fall by 12 percent in 2015, with a stronger fall during the first half of the year and a further slowdown in the fall in the second half.
The sectors most affected by the deep recession in Ukraine since last year are the mining and extraction industries, as the main production facilities are located in the east of the country, immersed for sixteen months in an armed conflict between Kyiv and the pro-Russian separatists.
Forecasts for 2016 are not cheering, with growth of just 1 percent and an inflation rate of 12 percent.
Ukraine’s economy has fallen 16.3 percent during the first six months of the year, according to the Ukrainian ministry of economy but the government expects a positive trend in economic activity in the second half.