The World Bank (WB) on Friday predicted a 3-percent contraction for the Ukrainian economy in 2014 compared with the growth of 1.5 to 2 percent estimated in October.

The bank cited Ukraine's ongoing political crisis, increased economic imbalances, decline in consumer demand and lack of fresh investment as reasons for the gross domestic product (GDP) performance revision.

"First and foremost, the government should pay attention to the macroeconomic and financial stabilization. Moreover, Ukraine should ensure cost transparency and reduce corruption," WB economist Anastasia Golovach said.

Kiev needs to implement structural reforms in energy, financial and business sectors to accelerate the nation's economic growth, Golovach added.

According to Fan Qimiao, the bank's country director for Ukraine, Belarus and Moldova, Ukraine's GDP may return to growth next year.

"If Ukraine implements an appropriate set of rapid reforms, it would resume the economic growth in the early 2015," Fan said.

The bank projected the pace of economic growth in Ukraine at 3 percent for 2015, Fan said.

Ukraine's economy stagnated last year, with the nominal GDP amounting to 180.7 billion U.S. dollars.