Ukraine Plans 2013 Budget on 4.5% Economic-Growth Forecast

Ukraine’s gross domestic product will expand about 4.5 percent next year, after an estimated growth of 3.7 percent this year, according to a government forecast.

The government will cut the corporate income tax rate to 19 percent next year from 21 percent this year, Deputy Finance Minister Serhiy Rybak said in a statement on the Finance Ministry website published late Aug. 31. The statement didn’t disclose any other budget assumptions.

The World Bank on July 19 cut its forecast for Ukraine’s GDP by 0.5 percentage point to 2 percent this year and forecast 3 percent growth next year. Ukraine’s economy expanded 5.2 percent in 2011. The economic growth quickened to 3 percent in the second quarter, when it made final preparations for the Euro 2012 soccer championship.

The former Soviet republic had a one-time benefit from its partnership with Poland in hosting the premier European soccer tournament in June after the two nations poured $35 billion into roads, airports, hotels and rail lines. That advantage will probably wane as the euro-area debt crisis trims demand for exports such as metals, which generate more than 50 percent of GDP.

To contact the reporter on this story: Kateryna Choursina in Kiev at kchoursina@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.