News
20.05.2009
Ukraine industry down by 32 percent
Ukraine's first-quarter industrial output has plummeted by 32 percent year-on-year, highlighting the devastating effect of the financial crisis on the country.
The fall was largely due to a continuing decline in global demand for steel the backbone of the Ukrainian economy.
As such, Ukraine has been hit harder than most countries, leading the International Monetary Fund to forecast an 8 percent contraction of the economy this year, and inflation to reach 16.8 percent.
However, in a more positive sign, the National Bank said Monday it has abolished a moratorium on pre-term deposit withdrawals, a painful restriction imposed last fall in order to stop a run on banks and shore up a shaken banking sector.
The output figures were confirmed by a State Statistics Committee official on Monday.
The IMF has agreed a $16.4 billion loan package to help Ukraine avoid a complete collapse. Less than half the total amount has been transferred as Kiev has struggled to meet strict stabilization requirements.
Associated Press
