The Ukrainian government said on March 5 the country's economy "will shrink this year and consumer prices will jump" due to the effects of the conflict in eastern Ukraine.
A statement posted on the government's website said GDP could fall by as much as 11.9 percent this year in a "worst-case scenario" and that year-end inflation could accelerate to 42.8 percent.
The figures are significantly worse than the 2015 economic forecast the Ukrainian government presented in September when it forecast GDP growth of 0.3 percent and year-end inflation not exceeding 9.8 percent.
Alexander Valchysen, the head of research at the Kyiv-based Investment Company of Ukraine, said "realism is winning within the walls of the government" and the government's new figures were "a good signal that Ukrainian authorities...understand there is no chance to suspend reforms."
