On the 11th of August 2010 Ukraine’s government revealed their expectation about 2011 YoY GDP growth, which is to reach 4.5% and is based on the 3.7% YOY GDP growth forecasted for 2010. The figures are generally in line with the current IMF announcement of 4.3% YoY GDP growth, but IMF on the other hand expects the average inflation rate to reach 10.7% as gas prices and other tariffs continue to rise.
According to VTB Capital consumer demand in Ukraine is recovering steadily and investment growth is expected to be shortly supported with bank lending. Additionally, the external environment remains supportive for key Ukrainian export industries.
Source: VTB Capital