World Bank Forecasts Bleaker Future for Ukrainian Economy

The Ukrainian economy is most likely to shrink by 7.5 percent in 2015 in contrast to previous estimates of 2.3 percent, according to the World Bank Group's latest 2015 Global Economic Prospects report released on Wednesday.

MOSCOW (Sputnik) — The European Council on Foreign Relations estimates the country's losses may amount to $10 million per day.

"Ukraine's economy is projected to contract by 7.5 percent in 2015," the report says.

"The prospects for a recovery in 2016–17 are highly uncertain, hinging upon a continued ceasefire and eventual peaceful resolution of the conflict in the East, a closing of the large financing gap, and continued implementation of the reform agenda under the IMF program."

The Ukrainian economy contracted by 6.8 percent in 2014 largely due to the ongoing armed conflict in the southeast of the country.

In contrast to its latest outlook, the World Bank's January report projected 3.5-percent growth in 2016 and 3.8-percent growth the following year.

With Ukraine's economy teetering on the brink of a default, the International Monetary Fund (IMF) approved a $17.5-billion bailout for the crisis-hit country in March, part of a four-year $40 billion package.

Ukrainian Finance Minister Natalie Jaresko said on Saturday she expected the IMF's first tranche of $1.7 billion to arrive as soon as July.