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Ukraine economy grows at fastest pace since Q4 2013

Staff Writer |
Ukraine’s crisis-hit economy picked up steam in the third quarter of 2016 as the country recovers from its deep recession.

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According to a preliminary estimate by State Statistics Service Ukraine, GDP increased 1.8% over the same period last year, which was an improvement over the mere 1.4% growth recorded in Q2.

The result, which marked the fastest pace of growth since Q4 2013, overshot expectations of a 1.4% expansion.

While the economy appears to have firmly embarked on a recovery path after contracting nearly 10% in 2015, the pace of growth is feeble given the stark decline last year.

Moreover, political tensions remain high and reform momentum has been slow. The International Monetary Fund visited Ukraine from 3 to 17 November to discuss a third review of the country’s bailout, but ultimately the Fund stated that the government needed more time to implement the agreed measures and postponed a completion of the third review.

Against this backdrop, FocusEconomics panelists expect GDP to expand 1.0% in 2016, which is unchanged from last month’s forecast.

For 2017, panelists expect the economy to accelerate to a 2.3% expansion, which is down 0.1 percentage points from last month’s projection.

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