Ukraine GDP contracts 0.5 percent in the first quarter

Ukraine real GDP shrank 0.5% year-on-year in the first quarter of 2026, according to the national statistics service. Output fell 0.7% compared to the fourth quarter as energy infrastructure faced drone and missile strikes. The contraction forced the central bank to cut its 2026 growth forecast to 1.3% from 1.8%.

Russia targeted the energy sector with hundreds of drones and missiles during the winter months. Economists said these attacks caused long blackouts and disrupted water and heating supplies.