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Moody's predicts Ukraine’s GDP to fall by 8% this year and 2% in the next year

15.12.2014

International rating agency Moody's Investors Service predicts a decline in the economy of Ukraine in 2014 to 8%, but expects decline to be reduced in 2015 to 2%.

This is stated in the research of the agency, posted on the corporate website.

 

"The forecast for the economy of Ukraine - minus 8% in 2014 and to the minus 2% - Moody's research states. - Political uncertainty and geopolitical tensions, the absence of structural reforms, high dependence on foreign investments, reduction of foreign exchange reserves and the need for significant recapitalization of banks constitute significant risks "

 

At the same time, the agency notes that the economic situation in Ukraine will largely affect the economic development of the region, particularly the banking system.

 

According to government forecasts, economic decline will amount 7% at the year-end. According to the latest forecasts made by international financial institutions, the decline in GDP in Ukraine in 2014 will amount to 8% according to the World Bank, 9% - according to the European Bank for Reconstruction and Development, 6.5% - according to the International Monetary Fund.

 

The fall in gross domestic product (GDP) of Ukraine in the third quarter of 2014 compared to the third quarter of 2013 states 5.3%, while, according to the operative data of the State Statistics, released in late October, the fall in GDP was 5.1%.

 

Ministry of Finance predicts drop in Ukraine’s GDP by 4.5% with inflation 13.4% in 2015.

 

15th of December 2014
Following: UNIAN