Cabinet of Ministers adjusts 2008 macroeconomic forecasts

In its June 27 decree, the Cabinet of Ministers approved adjusted 2008 macroeconomic forecasts, preliminarily revised on June 11. The yearend consumer inflation forecast was increased from 9.6% to 15.3%. Real GDP was left unchanged at 6.8% yoy in 2008. The Cabinet excluded the exchange rate forecast from the list of its macroeconomic projections. Polina Khomenko: The new inflation forecast looks unrealistic, as CPI was 14.6% YTD in May. For more details see our note of June 13. We forecast CPI at 21.0% yoy and real GDP growth at 6.8% yoy in 2008.