Damage from the Russian invasion and widespread power outages will slow Ukraine's GDP growth this year and next.
By the end of 2024, the World Bank predicts GDP growth in Ukraine at 3.2%. Next year, this figure will decline, but already in 2026, GDP growth in Ukraine is projected to reach 7%.
This was reported in a press release by the World Bank on October 17.
“In Ukraine, significant losses from the Russian invasion and widespread power outages are likely to slow growth from 5.3 percent last year to 3.2 percent this year and 2 percent in 2025,” the published forecast says.
At the same time, for the Russian Federation, which is waging an aggressive war, the World Bank also predicts a deterioration in the economy for the current and subsequent years.
“In Russia, tighter monetary policy and an even greater shortage of production capacity and labor are expected to slow growth from 3.6 percent in 2023 to 3.2 percent this year and 1.6 percent in 2025,” the press release.
However, in 2026, the World Bank predicts GDP growth in Ukraine to immediately reach 7%. Meanwhile, for the Russian Federation, the forecast is much worse – only 1.1% GDP growth.
Recall that the Verkhovna Rada adopted a bill on increasing taxes, which caused a lot of controversy among both deputies and the public. The tax changes will be in effect until the end of the year when martial law ends.