KIEV, March 12 – Ukraine's real GDP is expected to contract by about 5.5% in 2015 with inflation spike to about 27% temporarily in response to the exchange rate depreciation and gas and heating tariff increases, the International Monetary Fund said.

"Ukraine’s economic prospects will improve in the medium-term. Real GDP growth is expected to rebound to 2% in 2016 and rise to 4% in the medium term," reads a press release of the IMF issued late on Wednesday after the approval of the Extended Fund Facility (EFF) by the IMF Executive Board for Ukraine.