Economy: Ukrainian economy plummets - growth down to 0.6 percent
Putin's air war against Ukraine's infrastructure is having an impact: economists are revising their growth forecasts for Ukraine downwards. One sector is particularly affected.
The Ukrainian economy is sliding deeper into crisis due to Russian air attacks, according to the Vienna Institute for International Economic Comparisons (wiiw). The institute's autumn forecast expects Ukraine's economy to grow by only 0.6% this year, down from a summer forecast of 1.0%. The wiiw says growth will recover to 2.1% in 2027, but only if Ukraine continues to receive sufficient financial and military support from abroad.
The economy is being severely impacted by the destruction of energy facilities, critical infrastructure, and export infrastructure, including a 70% month-on-month decline in grain exports in August. Ukraine's central bank has raised its key interest rate to 16% to combat high inflation of around 10%.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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