Fitch Ratings forecasts 5% GDP contraction for Ukraine this year
KIEV, May 30 - Fitch Ratings forecasts that Ukraine's GDP will contract by 5% in 2014.
"The crisis will continue to weigh on Ukraine's economy. We forecast GDP to contract by 5% this year. Ex-Crimea, industrial production shrank 6% year on year in April, and consumer spending is well down, especially in the east. Inflation in April was 3.3%, but Fitch expects it to rise due to gas tariffs and pass-through of exchange rate depreciation. Public finances are under pressure but the government has increased tax collection and contained spending, narrowing the fiscal deficit," the agency said. |