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Ukraine's central bank raises growth forecast for 2017

Staff Writer |
Ukraine's central bank lifted the country's gross domestic product (GDP) growth expectation for this year, citing the revival of consumer confidence and the favorable situation on export markets.

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According to the revised forecast, the Ukrainian economy will grow 2.8 percent in 2017, up from the central bank's October 2016 projection of 2.5 percent.

"Stronger consumer demand driven by higher minimal wages is expected to foster economic growth in 2017. Exports are also projected to return to growth due to terms of trade improving and last year's good grain harvest," the bank said in a statement.

The economic performance will be also spurred by the slight acceleration of the investment activity, the statement said.

The bank has predicted inflation in the East European country would decelerate to 9.1 percent this year from 12.4 percent in 2016.

Ukraine's economy, which has sunk into recession at the beginning of 2014, has recovered last year, increasing by 1.8 percent.

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