Ukraine's Economy Ministry predicts 9.5% inflation and 5% GDP drop in 2009

14:13

Ukraine's Economy Ministry expects a 5% drop in GDP and 9.5% inflation in 2009, Economy Minister Bogdan Danylyshyn told journalists on Wednesday.

"We're planning [GDP] to be minus 5%... The calculated [inflation] index will be around 9.5%", he said.

The minister also noted that peak of the drop in the metal industry passed at the end of November this year.

"There are several tendencies that allow us to suppose that the peak of our industry production decline passed at the end of November.The first signs of this are seen in metallurgy. Even in the first days of December, we can see that product sales in this sector are active, and the price situation is getting better. Similar trends are seen in other sectors of our country's economy", he said.

Askedabouthispossibleresignation in the view of the newly formed parliament coalition, Danylyshyn noted that nobody had addressed him on that issue so far.

"I'm doing everything I can for economy to develop," he added.

As reported, in September 2008 the government predicted that GDP would increase in 2009 at the level of 6%, and that inflation would be under 9.5%.

Inflation in Ukraine in November 2008 was 1.5%, totaling 19.8% since early 2008. According to the Economy Ministry, this year's overall inflation may reach 21%.