KYIV, July 1 – Following the fourth review of the EFF arrangement, the International Monetary Fund (IMF) has worsened the growth forecast for Ukraine's real gross domestic product (GDP) for this year from 3-4% to 2.5-3.5%, while improving the forecast inflation at the end of the year from 8.5% to 8%.

The IMF is now seeing clear signs of a slowdown in growth due to deteriorating sentiment due to the development of hostilities, as well as due to power outages, IMF Mission Chief for Ukraine Gavin Gray said at a press conference on Friday evening after the disbursement of a tranche to Ukraine.