Ukraine keeps 2016 GDP growth forecast at 2%

The Ukrainian government reiterated on Monday that the country's gross domestic product (GDP) will grow 2 percent in 2016 as previously forecast.

According to a statement on the government's website, Ukraine's nominal GDP will reach about 107.3 billion U.S. dollars in 2016.

Based on an optimistic scenario of the economic development, inflation in the East European country is expected to ease to 12 percent next year from the projected 26.7 percent in 2015, the statement said.

Under a pessimistic scenario, the government forecast that the Ukrainian economy could contract 0.3 percent in 2016, with inflation reaching 14.7 percent.

Ukraine's GDP dropped 6.8 percent last year, which is expected to further shrink by at least 5.5 percent this year.