KIEV, July 10 – Ukraine’s economy will expand 2.4% in 2012, but will accelerate growth to 3.5% in 2013, reflecting likely stronger external demand for steel, Fitch Ratings said Tuesday in a report.

“Economic performance is dependent on the highly cyclical steel sector, and growth is sensitive to a downturn in the global economy or a eurozone growth shock,” Fitch said in the report.

The government successfully narrowed the general government deficit to 4.2% of GDP in 2011 from 7.7% of GDP in 2010, but it will widen slightly in 2012.