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World Bank confirms Ukraine's 2017 GDP outlook at 2%

The blockade of Donbas did not affect the bank's estimates.

World Bank confirms Ukraine's 2017 GDP outlook at 2%
Photo: Photo: ABS-CBN News

The World Bank, as at the beginning of the year, forecasts the growth of Ukraine's gross domestic product at 2% in 2017, Director of the World Bank for Ukraine, Belarus and Moldova Satu Kahkonen said Tuesday during the presentation of Ukraine Economic Update and macroeconomic forecast for Ukraine.

"We expect economy to grow 2%, but it is not enough to improve the standards of living," Kahkonen said.

According to her, the country's authorities need to spur reforms for higher economic growth.

"Two percent growth is not enough for Ukraine. Faster economic growth, at least at the level of 4 per cent needed to improve the living standards of Ukrainians who are still experiencing the economic crisis of 2014-2015. To accelerate the pace of economic growth, the government must introduce an ambitious package of reforms, including the reform of the land market, the financial sector, the fight against corruption, and privatization. This should stimulate the growth of investments and an increase in economic performance," the Bank said in Ukraine Economic Update.

In January, the World Bank forecast an increase in gross domestic product of Ukraine at 2% in 2017, and at 3% in 2018–2019. The government of Ukraine then expected GDP growth at the level of 3% in 2017, but reviewed the estimate down to 1.8% at the end of May amid the economic blockade of Donbas.

In Q1 2017, Ukraine's GDP grew 2.5 % over the same period previous year. The second quarter saw a 2.4% economy growth.