European Investment Bank: "Ukraine to Shrink 30% This Year... Russia -10%"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The European Bank for Reconstruction and Development (EBRD) has projected that Ukraine's economic growth rate will contract by 30% this year compared to the previous year.

According to AFP news agency on the 10th (local time), the EBRD announced economic forecasts for its jurisdictions, including Ukraine, at its annual conference held in Morocco.

The EBRD forecasted Ukraine's economic growth rate for this year at -30%, which is 10 percentage points lower than the -20% announced in March.

Ukraine, a global breadbasket, suffered significant damage to its infrastructure due to attacks by Russian forces, and the blockade of ship movements at Odesa, its largest port, dealt a heavy blow to agricultural exports.

However, Ukraine's growth rate for next year was revised slightly upward from the previously announced 23% to 25%.

The EBRD maintained its forecast for Russia announced in March. The Russian economy is expected to contract by 10% this year, with a growth rate of 0% next year.

Belarus, which was sanctioned alongside Russia for assisting the invasion of Ukraine, is projected to see its economy shrink by 4% this year.

The EBRD was established in 1991 to support former communist countries in transitioning to free market economies after the dissolution of the Soviet Union. It covers 38 countries including Russia, Ukraine, Eastern and Central Europe, Central Asia, the Middle East, and North Africa.

Currently, the EBRD has imposed sanctions on Russia and Belarus. Last month, it announced the suspension of funding and advisory access to both countries and plans to close its local offices.

This content was produced with the assistance of AI translation services.