World Bank Says Ukraine’s GDP to Shrink 8%

Ukraine’s economy is likely to suffer more than previously predicted because of the conflict in the east of the country, the World Bank has said.

It now says that GDP is likely to contract by 8% this year, compared with its previous prediction of 5%.

It also now expects a 1% contraction in 2015, instead of 2.5% growth.

The prediction comes as pro-Russian separatists and government forces vie for control of the airport in the eastern city of Donetsk.

The rebels say they occupy nearly all the airport, but the government disputes this.

The World Bank said the conflict had caused disruption in economic activity in the eastern Donetsk and Luhansk regions, leading to a sharper decline in GDP.

The bank’s chief representative in Ukraine, Qimiao Fan, said the two regions accounted for about one-sixth of the country’s GDP, including a quarter of industrial output.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza