The World Bank on Thursday improved its bleak outlook for Ukraine's struggling economy on signs of a global recovery, predicting that it will grow 2.5 percent in 2010 after contracting by 15 percent this year.

The growth will be driven by an anticipated rise in global demand for Ukraine's key exports, steel and chemicals, the Washington-based organization said in a statement. The World Bank had earlier forecast only 1 percent growth for 2010.

Inflation is forecast to fall below 14 percent in 2009 and below 11 percent next year.

The World Bank cautioned, however, that next year's growth will be modest due to a rising number of toxic loans, which are stressing the financial sector and dragging down lending. Many Ukrainian banks, corporations and private lenders had borrowed money in foreign currencies and are now defaulting on those loans, after the national currency, the hryvna, lost some 40 percent of its value.

Ukraine's financial crisis is one of the worst in Europe. The economy contracted by 20.3 percent in the first quarter of 2009 and by 17.8 in the second quarter. The country is relying on a $16.4 billion loan from the International Monetary Fund to avoid a complete meltdown.

Associated Press

Спасибо за Вашу активность, Ваш вопрос будет рассмотрен модераторами в ближайшее время