Ukraine's GDP down 1.2% in Jan-Feb 2026 due to decline in 4 economy sectors - Economy Ministry

MOSCOW. March 30 (Interfax) - Ukraine's real GDP declined by 1.2% in January-February 2026, according to the Ukrainian Economy, Environment, and Agriculture Ministry's estimates.

"Economic activity remained subdued at the beginning of 2026, particularly due to unusually cold weather, which forced some enterprises to interrupt their operations due to energy limitations," Ukrainian media quoted Economy Minister Alexei Sobolev as saying while taking questions from Verkhovna Rada deputies last Friday.

"The most affected sectors included electricity supply, mining, metallurgy, and transportation," he said.

"Some factors indicate that these results are temporary," he said.

Several sectors have manifested strong growth, as domestic trade increased by 13% in January and construction by 3%, and the processing industry also expanded somewhat, Sobolev said. Furthermore, according to the National Bank of Ukraine (NBU), business expectations gradually improved in February to 45.9 from 41 in January.

"And finally, what's worth noting is that we see exports of goods continued to grow by 1.7% in January and by another 3.6 % in February. We expect activity and positive dynamics to resume as weather is getting warmer and energy supplies improve, as is seen from better business sentiment," he said.

The ministry has identified several business challenges, including crisis-related issues, a lack of stable electricity supplies and high energy prices, a shortage of qualified personnel, and disruptions to supply chains and economic ties, he said.

As reported earlier, the Institute for Economic Research and Policy Consulting (IER) said Ukraine's real GDP declined 1.5% YoY in February 2026 after a 1% decline in January 2026.