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The European Bank for Reconstruction and Development (EBRD) lowered its forecast for Ukrainian economic growth in 2025 after months of Russian attacks wiped out much of the country's energy production capacity.
The bank lowered its economic growth forecast to 4.7% for next year, compared with the 6% forecast it published in May of this year, according to an EBRD communique. At the same time, the bank maintained its 2024 forecast of 3% growth.
"The destruction of electricity generation and transmission capacities is impacting Ukraine’s economy and has interrupted four quarters of solid gross domestic product (GDP) growth," the EBRD said.
The lender's flagship Regional Economic Prospects report estimates the Ukrainian economy grew by an annual 6.5% in the first quarter of this year, but growth slowed since the start of the year because of power shortages and the higher costs of imported electricity.
Still, Ukraine is expected to grow next year at a faster pace than the 3.5% average among the EBRD's coverage area, which includes central, eastern and southeastern Europe, the Caucasus and Turkey, Central Asia and the southern and eastern Mediterranean.
