The attack on the Kakhovka HPP will increase the trade deficit by $400M annually.
According to the NBU, Russia’s detonation of the Kakhovka HPP will have several economic consequences, including damage to agriculture, an increase in production and logistics costs, and a reduction in production by individual food industry enterprises. In 2023, these consequences caused a negative contribution of up to 0.2 percentage points to real GDP growth, added up to 0.3 percentage points to consumer inflation, and increased the deficit in trade in goods by $400M, the NBU noted. In the medium term,