30 November 2011
Ukrainian government downgraded 2012 GDP forecast to 4.0% from 5.0% previously, Interfax reported citing PM Mykola Azarov. Svetlana Rekrut: Revision of Ukraine’s 2012 GDP growth forecast comes amid numerous projection downgrades for the global economy and the CEE. GDP growth downgrade follows IMF’s call for a more sensible macro forecasting approach. We nevertheless think the new forecast is still optimistic given extremely weak external markets and growing risks of continued global economic slowdown. We expect Ukrainian economy to expend by 3.0-3.5% in 2012 from 5.0-5.2% in 2011.