Shelling and business uncertainty slowed real GDP growth in Ukraine to 0.5% in February.

The growth rate of real Ukrainian GDP decreased to 0.5% during the same month. This downturn is attributed to the damaging effects of Russian shelling on various industries and heightened uncertainty for businesses.

In January, GDP growth was 1.3%, according to the Institute for Economic Research (IER). Consequently, in February the shelling of ports led to a 4.5% decline in the real gross value added (GVA) in the transport sector. Growth rates in trade also slowed to 3.5% compared to the previous year.

The shelling of the gas production and distribution network in the Kharkiv and Poltava regions exacerbated the challenges in the extractive industry, which has already faced production cuts due to the temporary occupation of several coal mines in the Donetsk region. As a result, real GVA in this sector decreased by more than 5%.

In the manufacturing sector, real GDP growth was hindered by Russian shelling of industrial facilities and infrastructure, along with planned power outages, which limited growth to 2.5% in February.

Meanwhile, real GVA in agriculture fell by 1.1% due to a decrease in livestock production.