World Bank Cuts Ukraine’s 2026 Growth Forecast

The World Bank has lowered its forecast for Ukraine’s gross domestic product growth in 2026 to 1.2%.

The World Bank published this updated forecast in its Economic Outlook for Europe and Central Asia (ECA).

By comparison, Ukraine’s economy grew by 1.8% in 2025. Meanwhile, recovery is expected to accelerate in 2027, with growth rates potentially reaching around 4%.

The World Bank attributes the downgrade to several factors, including rising energy prices, intensifying hostilities, labor shortages, and significant fiscal pressure.

The report notes that these factors will continue to constrain economic activity in the short term.

Thus, the updated forecast indicates a slower recovery of the Ukrainian economy in the coming year, despite the expectation of gradual growth in the medium term.