The International Monetary Fund (IMF) has increased its forecast for the development of Ukraine's gross domestic product (GDP) in 2011 to 5%, compared to the figure of 4.3% forecast by the fund in July 2010.

According to the World Economic Review formed by the fund on Wednesday, the estimation of Ukraine's economic growth for this year was held at 3.8%, with inflation of 13%.

Comparing to July 2010, the IMF slightly decreased its forecast for inflation (December to December) next year, from 9.7% to 9.8%.

Average annual inflation, according to the fund, will increase to 10.7% next year from 9.7% this year.

The new macroeconomic forecast by the IMF regards to the one approved by the Ukrainian government in August this year.

Comparing to July 2010, the fund also improved its projection for the current account deficit of Ukraine's balance of payments: in 2010 from 0.7% of GDP to 0.4% of GDP and in 2011 from 1.7% of GDP to 1.3% of GDP.

The fund reported that unemployment in Ukraine would fall from 8.8% in 2010 to 7.7% in 2011, while in July 2010 the IMF gave another figure - 7.9%.

As it was said, in 2009 the Ukrainian economy declined by 15.2%, with average annual inflation of 15.1% (December to December inflation of 12.4%). The current account deficit of the balance of payments last year improved to 1.6%.