Ukrainian economist Oleksiy Kushh points out that Russian attacks are targeting the sector that accounts for 70% of Ukraine’s GDP: trade and services.This sector provides more than 70% of jobs and nearly 80% of revenue for the state budget. Unlike the energy sector, logistics lacks established mechanisms for rapid recovery; therefore, the consequences of the attacks will manifest gradually, intensifying in the coming months.
According to Kushh’s estimates, the negative impact on GDP, the labor market, and tax revenue will become evident in the fourth quarter, and part of the economy will enter a decline.
Economic activity indicators as early as the end of September will signal this trend
