Accounting Chamber: Inflation In Ukraine In 2009 To Exceed 15 Percent

Inflation in Ukraine in 2009 could exceed 15%, Accounting Chamber of Ukraine Board Chairman Valentyn Symonenko has said.
"According to our estimates, in spite of the fact some seasonal deflation was observed in August, the inflation of consumer prices on the market will exceed 15% by the end of 2009," he said at a press conference at Interfax-Ukraine.

Symonenko said, referring to the Accounting Chamber of Ukraine, that Ukraine's GDP in the first half of 2009 fell by 19.7% year-on-year.

The 0.4% growth of GDP planned in the national budget for this year is therefore unrealistic, and this will lead to a shortfall of over UAH 20 billion of revenues planned in the national budget, he said.

Symonenko also said that shadow economy in the country has grown tremendously.

"According to the Accounting Chamber, the level of the shadow economy has reached almost 40% of GDP and exceeds the limits of the country's macroeconomic safety," he said.

The fall by two falls in goods and services imports and exports in Ukraine in the first half of 2009 will lead to a UAH 17 billion shortfall in revenues to the national budget, the Accounting Chamber said.

Source: KyivPost