Ukrainian govt expects GDP to go up 6.5% in 2012, inflation - 7.9%
KYIV. May 13 (Interfax) - The Ukrainian Government forecasts GDP growth in 2012 to speed up to 6.5% from 4.5% growth in 2011 as inflation slows from 8.9% to 7.9%, Finance Minister Fedor Yaroshenko said at a parliamentary session on the budget resolution.
He said that the government plans to reduce the sate budget deficit next year to 2.5% of GDP from 3.1% of GDP this year.
"The state budget deficit should decrease to 2.5%. In 2012 and subsequent years measures will be taken to reduce the deficit in the state management sector to that of the state budget. In addition, total state debt is expected to drop to no less than 30% of GDP," he said.
The official rate of the hryvni in 2012 is forecast at 7.9-8 hryvni/$1.
Nominal GDP is still planned at 1.475 billion hryvni.
"The government is adjusting the main macroeconomic indicators such as the size of nominal GDP," the minister said.
He added that heightened modernization of production and the improving investment climate will have a key impact on Ukraine's economy in 2012.
Ukraine's Upper Rada approved the country's main budget aims for 2012 on Friday.