Ukraine's economy shrinks as Russia continues bombing businesses

Russia has intensified its campaign against Ukraine's businesses, leading to a downgrade of Ukraine's economic growth forecast from 1.3% to 0.5% for the year, according to the Economy Ministry. The country's steel production, e-commerce, and ports have been targeted, severely impacting the GDP. Russia's attacks on energy and logistics infrastructure have hindered Ukraine's ability to export goods, particularly agricultural products that make up 17% of the country's GDP.

The U.N. is providing financial support and storage solutions to help farmers avoid losses, with 10,000 storage sleeves and prefabricated storage units being delivered soon. The Agriculture Ministry estimates a capacity deficit of 11 million metric tons this fall, requiring $44 million in financing. Ukraine's metallurgy industry, including the Zaporizhstal steel plant, has also suffered from repeated missile strikes, causing delays and potential impacts on exports.

Additionally, Russia has targeted retailers and supermarkets across Ukraine, causing supply chain disruptions and food shortages. The country's energy facilities, such as the Kherson thermal power plant, have also been hit, with warnings of a challenging winter ahead.