Ukrainian economy contracts 6.8 pct in 2014 - statistics service

KIEV, March 20 Fri Mar 20, 2015 6:29am EDT

KIEV, March 20 (Reuters) - Ukraine's economy contracted 6.8 percent in 2014 after zero growth in 2013, the state statistics service said on Friday, due to the financial toll of a separatist conflict in the industrial eastern regions.

The International Monetary Fund, which has approved a new $17.5 billion financing package for Ukraine, forecasts the economy contracting 5.5 percent this year and returning to growth in 2016, but has warned efforts to restore financial stability face "exceptionally high" risks from further fighting.

The statistics service revised its data for the fourth-quarter of 2014 to a contraction of 14.8 percent from 15.2 percent. (Reporting by Natalia Zinets; Writing by Alessandra Prentice; Editing by Richard Balmforth)

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