KYIV, June 9 – The World Bank has downgraded its inflation forecast for Ukraine to 20% by the end of 2022 from its April forecast of 15% inflation, Arup Banerji, World Bank Regional Country Director for Eastern Europe (Belarus, Moldova and Ukraine), has told Interfax-Ukraine.

Inflationary pressures are rising. Consequently, at this stage, inflation is expected to continue rising and could reach 20% in December against 15% in our April forecasts," Banerji said in an exclusive interview with Interfax-Ukraine.

Banerji said that the rise in inflationary pressure is particularly because of the need to cover budgetary requirements in March-May.

International partners have acknowledged the financial challenges, thus they have committed around $20 billion in financial assistance to Ukraine. Despite these significant commitments, the timing of repayments will continue to be critical in order to meet Ukraine's current needs," the World Bank regional director said.

The World Bank has also maintained its forecast for a sharp contraction of 44% in Ukraine's GDP in 2022.

However, owing to the length of the war, when hostilities continue in several regions of Ukraine, we cannot be sure of our preliminary forecasts for a recovery in the medium term relatively," Banerji said. (om/ez)