The European Bank for Reconstruction and Development (EBRD) has released an updated forecast for the Ukrainian economy, lowering its growth expectations for the near term. The report highlights that key macroeconomic indicators remain under pressure due to the ongoing war, regular attacks on energy infrastructure, and limited export capacity.
According to EBRD estimates, economic activity is recovering more slowly than anticipated in the spring. High energy costs, power supply disruptions, and the need for constant repairs are driving up business costs and constraining production. Logistics challenges—specifically unstable port operations and congested railway routes—continue to limit the export of agricultural and industrial goods.
The Bank notes that domestic demand remains weak, while investment activity is minimal due to high risks. Despite controlled inflation and financial system stability, these factors are insufficient to drive a rapid recovery. The EBRD warns that further attacks on critical infrastructure could slow economic growth even more.
