(Adds president's comments)
KIEV, Dec 16 (Reuters) - Ukraine's economy shrank 14.4 percent year-on-year in November, the sharpest drop in over a decade, the State Statistics Committee said on Tuesday.
The abrupt turnaround in Ukraine's economy -- which has averaged 7 percent annual growth since 2000 -- came in October when industrial output slumped because global demand and prices for Ukraine's key steel chemical sectors fell.
The government now expects year-end growth at 3.5-4 percent -- lowering its previous forecast of 6.8 percent -- against 7.6 percent last year.
Next year, it expects a fall of 5 percent. President Viktor Yushchenko said the economy could shrink by as much as 10 percent in the first quarter of 2009.
"The president, citing analysts forecasts, said that in the first quarter of next year, GDP is epxcted to fall 7-10 percent," his press service said in a statement.
He also predicted inflation at 22-25 percent by year-end compared to 22.3 percent in November, Interfax Ukraine news agency said Yushchenko told regional officialss.
Data showed January-November growth had slowed to 3.6 percent, lower than analysts' forecast of 4.6 percent and also the 10-month result of 5.8 percent.
The fall in growth follows a slump in industrial production of almost 30 percent in November, even deeper than a 20 percent drop registered in October.
Falling exports have contributed to the weakness of the hryvnia currency, which sank to a new historic low on Monday of 8.05-8.20 to the dollar. (Editing by Stephen Nisbet)