Expected GDP growth of 1%, instead of the forecast 2%.
International rating agency Fitch Ratings downgraded the growth of the Ukrainian economy. Instead voiced earlier 2%, now the agency expects growth of the Ukrainian GDP is only 1%.
As stated in the release of the agency, the GDP growth rate of 2% is forecast in the medium term, “Fitch expects only a moderate recovery of the Ukrainian economy (we expect GDP growth of 1% in 2016 and by 2% – in the medium term)., Which limits the potential improving asset quality indicators in the near future, as well as inhibiting the growth of the balance sheet and income generation “, – reported in Fitch.
It is noted that in May of this year, the agency has lowered the forecast for economic growth to 2% from 3.9% (due to the loss of exports to Russia, the military losses, lower prices for key commodity markets and the weakness of the financial sector).