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Kiev (AFP) - Ukraine's central bank chief on Tuesday said the strife-torn country's economy contracted by 7.5 percent and inflation soared in a year more painful than any since World War II.

Valeria Gontareva added however that the pro-Western leaders who rose to power in Kiev after the February ouster of a Moscow-backed president were optimistic about the chances of a gradual improvement next year and actual growth in 2016.

Gontareva's comments came a day after parliament approved an austerity budget that should help unlock emergency assistance from the International Monetary Fund and other global lenders within the next few months.

The central bank head -- criticised in the media for following IMF advice and allowing the hryvnia currency to depreciate by about 50 percent -- said the annual inflation rate had reached 21 percent by the end of November.

"No matter how sad it may sound, we have to say things as they are: our GDP fell by 7.5 percent and the currency's devaluation reached 50 percent," Gontareva said.

The government had earlier projected that the economy would shrink by up to five additional percentage points in 2015.

Gontareva confirmed the figure but also cautioned that inflation next year may reach 18 percent -- above the 13-percent target because of the government's decision to revoke subsidies and raise utility tariffs.

"Our country has not lived through such a difficult year since at least World War II," Gontareva told reporters.

"I think that what we have experienced this year will never happen again. Without question, we are looking forward to 2015 with optimism."

- Pinning hopes on IMF -

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Ukraine economy shrank 7.5% in 'worst year since WWII'