"The economy is recovering modestly, but accelerating reforms can help to boost growth in the medium term, address macroeconomic vulnerabilities and improve the well-being of the population," World Bank Country Director Satu Kahkonen stated.
Additionally, Kiev needs to reform its pension and healthcare systems and land markets, Kahkonen said.
In 2016, Ukraine’s economy grew modestly by 2.3 percent, while fixed investment rebounded by 20 percent and the agriculture sector grew 4.8 percent in the fourth quarter, the World Bank said.
Economic growth in 2017 is projected at 2 percent amid a weak global environment and a coal and trade blockade with the Donbas. The blockade is expected to negatively affect Ukraine’s steel and electricity sectors.
On Monday, the International Monetary Fund (IMF) authorized a $1 billion tranche of financial aid to Ukraine. Kiev has already received $7.7 billion in aid under the IMF program.
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