The war in Ukraine will continue even in 2027, and Ukraine needs 56 billion dollars to cover the budget deficit. Also, the growth of the Ukrainian economy this year will be the lowest in the last four years, reaching 1.2%, estimates the World Bank (WB) in a new report recently published and picked up by The Moscow Times.
“The recovery of the Ukrainian economy will be much weaker than previously predicted, as it is now assumed that active hostilities will continue throughout the year 2027“, announced the World Bank.
In February, the World Bank estimated that the war in Ukraine would end by the end of this year. This would allow the GDP to grow by 4% next year and 4.5% in 2028. Currently, however, the World Bank has reduced these forecasts to 1.5% and, respectively, 3%.
The deterioration of the situation this year is driven by the “increase in (Russian) attacks on critical (Ukrainian) infrastructure and disruption of exports”, particularly due to the suspension of Ukrainian grain shipments through the Black Sea. By the beginning of September, Ukraine’s cereal exports had decreased by 14%, notes the World Bank.
At the same time, the World Bank also forecasts an increase in the Russian economy in 2026, by 0.8%, compared to 1% in 2025, and in 2027-2028, an increase of 0.7% per year. This year’s military spending has partially offset the decline in civilian industries, which have faced more severe lending conditions, lower demand and supply, the World Bank also notes.
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