Ukraine??™s economy was growing faster in May and June as steel sector, the backbone of the country??™s economy, has been increasing output due to stronger external demand, analysts said.

The economic expansion was also helped by a major cut in key interest rates last month.

The discount rate, the rate at which the central bank lends money to commercial banks, was cut to 8.5% from 9.5% ???to strengthen positive trends that had been showing themselves??¦ on the macroeconomic level,??? the central bank has said.

The accelerating economy is a good news for Yekhanurov, who has been struggling to restart the growth ever since he had been appointed the head of the government in September 2005.

President Viktor Yushchenko may use the economic success statistics as an argument in talks with the Regions Party, the largest group in Parliament, for nominating Yekhanurov as the prime minister in the next government.

Yekhanurov surprised many in January by predicting that the economy would grow 6% on the year in 2006, much faster than 2.8% that had been officially predicted. But Economy Minister Arseniy Yatseniuk then refused to change the growth forecast for 2006.

Now, after the economy has been showing robust expansion in May and June, Yatseniuk agreed the government will probably do move to revise some economic indicators upwards. He did not disclose which indicators will be revised, but the economic growth is one of the options, analysts said. (nr/ez)