Ukraine's economic growth this year is expected to slow to 1.2% due to ongoing hostilities, rising energy costs, and fiscal pressure, according to the World Bank's economic review of Europe and Central Asia, UNN reports.
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The World Bank has downgraded its forecast for Ukraine's economic growth in 2026 from the 2% projected in January to 1.2% now.
At the same time, the forecast for Ukraine's economic growth in 2027 remained unchanged at 4%.
Economic growth in Ukraine is expected to slow to 1.2 percent this year, driven by rising energy prices, intensifying hostilities, labor shortages, and fiscal pressures.
Ukraine's prospects, according to the World Bank's review, "depend on the duration of hostilities in the country and the continuation of external assistance."
"Growth could accelerate to 4 percent in 2027, provided that hostilities end as anticipated, supported by large-scale recovery and a rebound in consumption. However, growth rates are expected to remain lower than previously projected due to the extent of damage to energy and industrial infrastructure, labor shortages, and uncertainty," the review notes.
World Bank downgrades Ukraine's economic growth forecast for 202607.10.25, 14:53