MOSCOW, November 6. /TASS/. Damage to energy and logistics infrastructure, production facilities, and the ongoing blockade of seaports will cost 1.9 percentage points of Ukraine's GDP, according to the October inflation report released by the National Bank of Ukraine (NBU).
In the report, the regulator significantly downgraded its GDP forecast for the current year. The NBU now projects the economy to contract by 0.4%, reversing its previous growth forecast of 1.8%. NBU analysts cited the seaport blockade and widespread destruction of industrial and energy infrastructure as the primary drivers behind the downward revision, estimating their combined negative impact at 1.9 percentage points.
The mining and metallurgical sectors have suffered the heaviest losses, the report noted. The suspension of operations at major steel plants is expected to drain 0.7 percentage points from GDP, with a substantial portion of the damage stemming from secondary effects, such as reduced demand across related industries.
Additionally, the central bank warned that the infrastructure damage will add roughly 0.7 percentage points to annual inflation. Consequently, the NBU revised its year-end inflation forecast upward, from 10% to 12.5%.