Bloomberg: Ukraine Sees Economic Plunge in 2015 Amid Spike in Prices
Ukraine’s economy will shrink this year and consumer prices will jump, the government said, as the country struggles to fend off the effects of a war with pro-Russian separatists.
Gross domestic product may shrink as much as 11.9 percent in 2015 in a worst-case scenario, and year-end inflation may accelerate to 42.8 percent, the government said in a statement detailing updated forecasts on its website on Thursday. The outlook was significantly worse than September estimates that saw GDP growing at least 0.3 percent and year-end inflation of no more than 9.8 percent.
“Looks like realism is winning within the walls of the government,” Alexander Valchyshen, head of research of Kiev-based Investment Capital Ukraine, said by phone. “It’s a good signal that Ukrainian authorities are tending to consolidate amid economic challenges and understand that there is no chance to suspend reforms.”
WNU Editor: The above economic predictions are (in my opinion) overly optimistic .... and for eastern Ukraine the economic situation is even worse-off helped by the Kiev ordered blockade .... Ukraine blockade of rebel territory fosters resentment (AP)
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