Booming inflation reflected negatively on the economy through April-May. Tightened monetary policy and changes in foreign exchange rate policy hit on bank liquidity. As a result, interest rates went up drastically and hryvnia appreciated to 4.5 per $1 by the end of May. In this respect we revised our forecast for GDP growth down to 5.8% in 2008 and 5.5% in 2009. The full report could be obtained through subscription at Global Source (www.globalsourcepartners.com).
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