OREANDA-NEWS. On 20 July 2009 was announced, that the World Bank (WB) worsened its forecast of Ukraine's real GDP drop from 9% to 15% in 2009. Meanwhile CPI forecast was improved from 16.4% to 13.4% in 2009. According to the World Bank the main factors of GDP drop will be the decrease in the household savings, which will lead to the consumption reduction, weak labor market and the decrease in the external demand. The decrease of GDP and energy tariffs recalculation may reduce the price growth, according to the institution.

In Millennium Capital’s base case scenario Millennium Capital is agree with the WB GDP forecast. Still a lot will depend on such government programs as banks recapitalization and tariffs imposition on energy enterprises. Meanwhile, Millennium Capital considers that inflation may be higher that 13.4% in 2009 related to the new energy tariffs for the population and coming elections 2010.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.