Ukraine: "The economy is collapsing": Putin's attacks are ruining Ukraine
Russia's air war against the Ukrainian economy is having an impact: economists are significantly revising their growth forecasts downward. New holes are appearing in the state budget.
Kiew and Berlin report that Ukraine's economy is in a severe state of decline following intensified Russian attacks. The European Bank for Reconstruction and Development (EBRD) predicts only a 1.5 percent growth for this year, a 0.7 percent decrease from their June forecast. Economists are projecting a significant reduction to 2.5 percent growth for the upcoming year due to the blockade of Ukrainian exports through the Black Sea.
Russian attacks on ships and ports have led to a more than 50 percent drop in Ukraine's grain and vegetable oil exports in August, according to EBRD Chief Economist Beata Javorcik. The exports are at the lowest level since August 2022. Estimates suggest that 17 to 19 million tonnes of agricultural products may not be sold this year, resulting in a 3.5 to 4 billion euro decline in agricultural exports, as reported by the economist.
Additionally, there will be losses from the export of metals and ores amounting to 1.5 billion euros.
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