KIEV (Reuters) - The Ukrainian government on Friday approved a draft 2018 budget that foresees a deficit of 2.4 percent of gross domestic product, according to Prime Minister Volodymyr Groysman.
The budget deficit is in line with the fiscal targets of Ukraine’s $17.5 billion aid-for-reforms program from the International Monetary Fund, but it still needs to be backed by lawmakers in parliament.
Groysman said the budget was based on expectations the economy would grow 3 percent in 2018 versus a projected 1.8 percent this year.
Inflation is seen slowing to 7 percent from 11.2 percent in 2017, he said.
Reporting by Natalia Zinets; Writing by Alessandra Prentice; Editing by Jon Boyle