World Trade Organization WT/BOP/S/16 9 June 2009 (09-2771) Committee on Balance-of-Payments Restrictions consultations with UKRAINE Background Document by the Secretariat This document has been prepared in accordance with paragraph 12 of the Understanding on the Balance-of-Payments Provisions of the GATT 1994. RECENT macroeconomic and trade developments Recent Economic Performance Ukraine's economy grew on average strongly at an annual rate of more than 7% from 2000, but since 2005 its performance has become very uneven. After contracting in 2005, economic growth resumed strongly in 2006 and reached 7.9% in 2007, but then decelerated to 2.1% in 2008. The IMF forecasts Ukraine's real GDP will contract by 8% in 2009. Industrial production has already contracted sharply as a result of declining export demand for steel and commodities. Since 2005 growth has been driven by real domestic demand, fuelled by a credit boom that was driven by significant