Economy and politics

According to State Statistics Committee of Ukraine, inflation in Ukraine accelerated to 1% in January 2011 compared to 0.8% in December 2010. Food prices rose by 1.3%, alcohol and tobacco by 0.5%, utilities by 1.4% (hot water and heating tariffs rose by 5.7%), and transportation (including rising fuel prices and oil at 5.4%) grew by 2.4%.

Industrial output in Ukraine grew by 12.5% in December 2010, compared to December 2009. In 2010, industrial production increased by 11% YoY.

Ukraine will receive second tranche of International Monetary Fund (IMF) loan amounted to USD 1.53 bln.

State budget deficit of Ukraine in 10M10 amounted to UAH 56.6 bln, which is 4.6% more than planned UAH 54.1 bln.

Direct state debt and state-guaranteed debt of Ukraine grew by 0.3% to USD 51.2 bln in October, equals 28.7% increase in 10M10.

Real GDP growth in 10M10 accelerated to 4.8% YoY, which was due to high recovery rate of the basic industries in September-October.

Net loss of Ukrainian banking system in 10M10 amounted to USD 1.3 bln, which is 55% lower than in 10M09.

By the year end International Monetary Fund (IMF) and Ukrainian government will carry out first review of the stand by credit agreement and Ukraine is likely to get the second tranche of the IMF credit amounted to USD 1.6 bln, including USD 1 bln to support government budget.

Ukrainian industrial output recovery rate remained at 10.2% in October, which equals 10.7% YoY in 10M10.

Ukraine’s Real GDP increased by 3.5% yoy in 3Q10 in constant prices of 2007.