Ukraine’s GDP fall slows to 26% in February – economy ministry

KYIV (Reuters) – Ukraine’s gross domestic product fell by 26% in February after a 32% drop in January, the economy ministry said on Wednesday.

Economy Minister Yulia Svyrydenko said in a statement that economic activity had recovered in February because of a better situation in the energy sector and a lower energy deficit.

“The ‘energy war’ won by Ukraine added to the optimism of businesses, which improved their sentiment about the future and intensified its activities,” Svyrydenko said.

“Overall, the economic front is holding up – the economy is functioning, adapting, and recovering.”

Ukraine’s energy system has withstood months of Russian missile and drone attacks.

At times millions of people were left without power but , after quick repairs and the use of equipment provided by its allies, Ukraine is now producing enough energy to support businesses and consumers.

The economy ministry said the situation was improving across many sectors of the economy, including in the transport, retail and building industries.

The ministry expects GDP to grow by 1% this year after 30% fall in 2022.

(Reporting by Olena Harmash, Editing by Timothy Heritage)