WASHINGTON: The IMF said Sunday it has lowered its growth forecast for Ukraine's war battered economy to minus nine percent, due in large part to "the unresolved conflict in the East."
The dismal projection -- down from an earlier forecast of minus five percent -- followed a two-week-long visit by an IMF delegation to Kiev earlier this month.
Inflation in Ukraine will hit an estimated 46 percent, officials said, largely due to the skyrocketing price of oil and a large exchange rate depreciation in February.
The Fund's Ukrainian mission chief Nikolay Gueorguiev said in a statement summing up the preliminary findings from the May 12-29 meetings, said the talks were "constructive."
The IMF did see some encouraging signs of growing stability, the Fund official said.
"In recent months, signs that economic stability is gradually taking hold are steadily emerging," said Gueorguiev.
"The foreign exchange market has remained broadly stable. Gross international reserves, although still very low, have increased to US$9.6 billion at end-April. Banks' deposits in domestic currency have been recovering," he said.
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