KIEV, Dec. 23 – President Viktor Yushchenko forecasts that Ukraine's GDP will grow 1%- 1.8% in 2008.

Inflation in 2008 will amount to 22%-23%, Yushchenko said at a meeting with regional governors and local authorities in Kiev on Tuesday.

Yushchenko blamed the high inflation on the government's populist policies.

Ukraine will finish the year with a trade deficit totaling $14 billion.