KIEV, April 11 ??“ Ukraine's economy is likely to grow by 5% on the year in 2007, slower than the government has expected on higher gas prices, according to a report by the International Monetary Fund.

The government expects the economy to grow between 6% and 7% on the year in 2007.

"In Ukraine, the rise in international steel prices and robust domestic demand are underpinning a strong growth rebound, but the pace of activity is expected to moderate in response to large increases in the price of imported natural gas and an associated overall deterioration in the terms of trade," the IMF reported.