Russian strikes cause Ukraine’s sharpest economic contraction since recovery began
Russian missile and drone attacks have triggered Ukraine’s steepest economic decline since the end of the war-induced recession, with forecasters now expecting near-zero growth this year.
Russian military strikes on Ukraine’s infrastructure and industry have caused the sharpest economic contraction since the country began recovering from the initial war shock. According to the latest data, Ukraine’s gross domestic product has declined at a significant pace, prompting forecasters to drastically lower their annual growth projections.
Economists note that intensified Russian attacks on energy facilities and transport infrastructure have disrupted production and logistics, worsening an already difficult economic situation. Ukraine had previously experienced a deep recession due to the war, but in recent months a recovery was underway. That recovery has now stalled.
Forecasters now expect Ukraine’s economy to grow by near zero this year, a sharp contrast to the previously anticipated 3-4% expansion. The situation remains volatile, and further strikes could worsen the economic outlook even more.
