According to optimistic forecasts, Ukrainian GDP in 2005 may increase 4%, Ukrainian Prime Minister Yury Yekhanurov said at a meeting with the diplomatic community in Ukraine.

"We hope that by the end of this year there will be no further drop in production growth in most sectors of the economy. We estimate the GDP growth rate like this: scientists say that it will be 2%, specialists and the Economics Ministry say that it will be at about 3.5%, optimists say 4%," the prime minister said.

He said that the drop in production in the metallurgy sector halted in October. "Let's see how our giants perform," he said.

Ukrainian GDP in September increased 3% compared with September 2004, after a drop of 1.6% in August. GDP increased 2.8% year-on-year in January-September.

The Ukrainian government that was dismissed at the start of September, reduced its GDP forecast for this year from 8.2% to 6%-6.5%. The new government cut it further to 4%, from a record high of 12.1% last year.

The government forecasts that GDP growth will pick up to 7% in 2006.