NBU worsens Ukraine's GDP growth forecast for 2016

"The slower restoration of the economy compared to the previous year is linked to the lower than it was expected prices on the global commodity markets, worsening of prospects for growth of the global economy, new restrictions in trade with Russia and transit across Russia," the NBU said. The central bank said that among other factors pushing up the inflation slowing trend is the further reduction of inflation expectations, the revoking of the additional imports duty and low global prices of energy and food, the board said. The NBU revised upwards Ukraine's GDP fall in 2015 from 11.5% to 10.6% and the bank anticipates that GDP in 2017 will grow by 3% with inflation of 8%. As reported, the 2016 Ukrainian budget is based on the forecast for GDP growth by 2% with inflation of 12%.