GDP: The Institute downgraded its estimate of the real GDP growth to 3.8% in 2010 and 4.8% in 2011.
Fiscal Indicators: The fiscal pressure will remain high in 2010, which would result in fiscal tightening. However, we assume that Ukraine will receive USD 2 bn from IMF allowing consolidated fiscal deficit of 4.6% of GDP not taking into account funds required for banks’ recapitalization. The situation will somewhat improve in 2011, when we expect the deficit to narrow to 2.9% of GDP.
