Cabinet worsened the forecast for inflation and GDP

The government targets GDP growth of 1.8% and consumer inflation of 11.2% at the end of this year
Stepan Kubiv
The Cabinet of Ministers at its meeting on May 31 worsened the macroeconomic forecast for the main indicators for 2017. The government expects that this year real GDP will grow by 1.8% (the previous forecast is 3%), the consumer price index will be 11.2% (it was 8.1%). This is stated in the message of the Government portal.

“Almost a year has passed since the last forecast of macroeconomic indicators for 2017. During this time, a number of weighty factors determined the adjustments: the introduction of economic sanctions by Ukraine, raising the level of the minimum wage, changing the forecast of the price dynamics for key Ukrainian products,” explains the First Deputy Prime Minister Minister Stepan Kubov.

The Cabinet notes that their forecast is close to the expectations of the IMF: 2% of economic growth in 2017 and 11.5% of inflation (consumer price index, CPI).

At the last monetary briefing of the National Bank of Ukraine, which declared inflation as its main target in 2015, confirmed its previous forecast for the CPI at 9.1%. In 2017, the National Bank set the inflation target at 8 ± 2%.