Fitch doubled worsened the forecast of growth of economy of Ukraine

International rating Agency Fitch has twice downgraded their growth forecast of the Ukrainian economy in 2016. The Agency notes that in 2016, the growth of the economy is expected to be 1%, not 2%, as expected in the spring.

“Fitch expects only a moderate recovery of Ukraine’s economy (we forecast GDP growth of 1% in 2016 and 2% in the medium term)”, – stated in the message of rating Agency.

In may 2016, experts Fitch keeps long-term credit rating of Ukraine to pre-default level CCC, predicting at the same time, return the economy to growth after a decline in 2015 by 9.9%. They predicted that GDP growth in Ukraine in the current year is 2%. The Agency noted that the potential medium-term growth of the economy of Ukraine is constrained by the “steady loss of the Russian export demand, damage caused by the military conflict in the East of the country, low commodity prices and a weakened financial sector.”

In early August, Fitch affirmed long-term ratings of Ukreximbank and Oschadbank at “CCC”, noting the high dependence of both the Ukrainian state-owned banks from the ability of the Ukrainian authorities to maintain macroeconomic stability.

According to the forecast of the national Bank of Ukraine, the country’s GDP in 2016 will rise by 1.1% according to the forecast of Prime Minister of the country Vladimir Groysman – 1.5%.