Ukraine's real GDP grows 1% in April after declining for 3 months - IER report

MOSCOW. May 20 (Interfax) - Ukraine's real GDP grew 1% YoY in April 2026, after contracting for three months in a row, Ukrainian media reported, citing the updated Monthly Economic Monitoring report published on the website of the Kiev-based Institute for Economic Research and Policy Consulting (IER).

The EIR report shows real GDP declined 0.6% YoY in Q1 2026. Meanwhile, data from the State Statistics Service of Ukraine indicate that real GDP contracted 0.5% YoY in the first three months of the year.

"Lower electricity and gas consumption due to an earlier end of the heating season, as well as partially repaired generation and electricity transmission capacities, ensured largely uninterrupted electricity supply despite fewer sunny days than in March. At the same time, the war in the Middle East led to higher fuel prices, which increased business costs," the report said.

Access to electricity improved somewhat in April due to the partial restoration of generation as a result of repairs, it said. Electricity generation and gas distribution declined 7% YoY, it said.

Real gross value added (GVA) in the mining industry edged up 1% YoY in April 2026 from a low base due to disruptions to gas and iron ore extraction. Real GVA in manufacturing grew 4% YoY, with the slowdown caused by a decline in metallurgy output, the report said.

Real GVA in trade went up 4% YoY in April 2026, buoyed by rising demand and positive business sentiment, the report said. Real GVA in the transport sector fell 7% YoY due to high fuel costs and smaller volumes of iron ore and oil shipments, it said. Real GVA in construction likely saw a small increase.

Ukrainian Prime Minister Yulia Sviridenko said on Tuesday, May 19, that Ukraine's GDP contracted 0.2% YoY in January-April 2026.