RTTNews - The World Bank on Thursday lowered its outlook for Ukraine to show an economic contraction of 15% this year instead of a 9% shrinkage predicted in April.

The international lender foresees a slow recovery in 2010 with economic growth at 1% and then at 3.5% in 2011.

In the first quarter of this year, Ukraine's real gross domestic product dropped 20.3%.

The World Bank noted that prudent fiscal management is the core macroeconomic challenge going forward for the country.

Ukraine's economic recovery needs to be assisted by structural reforms aimed at improving productivity, the bank added.

Further, the World Bank forecasts inflation at 13.4% in 2009, 10.5% in 2010 and at 8.8% in 2011.

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