KIEV, Feb. 24 - Standard & Poor's forecasts the Ukrainian economy will grow 3.5% in 2010 and 4% in 2011.

The agency said in a special report on the banking sectors of Russia, Kazakhstan and Ukraine that it expected inflation in Ukraine to be 13% this year before slowing to 9% in 2011.

S&P said it expected the Ukrainian economy to recover more slowly this year because its banking sector had suffered the most damage, and because unemployment was highest there among the three countries under review.