Ukraine entered the second economic crisis of the Great War - stagflation began: the economy is declining, prices are rising rapidly, and the country is threatened by a prolonged recession, mass bankruptcies of enterprises and a new wave of poverty, - EP.
Stagflation began in Ukraine - one of the most severe economic crises. This is a situation where production is decreasing, businesses are shrinking, jobs are shrinking, but the prices of products, goods and services continue to rise.
The economy is already down. In the third quarter of 2026, GDP decreased by 0.7%. The National Bank expects a 0.4% decline in the economy by the end of the year, although earlier it expected a 1.8% growth.
Ukrainians expect a further increase in the cost of living. The NBU raised the inflation forecast to 12.5%. This means that money will lose purchasing power: the same salary will be able to buy less food, medicine, clothing and other essential goods if income does not rise in line with prices.
The most painful price increase will hit people on fixed incomes. Pensioners, low-income families and workers who will not receive a salary increase will be forced to spend a larger and larger part of the budget on food, services and basic necessities.
Russia is systematically destroying the foundation of the Ukrainian economy. Blockades of maritime exports, attacks on factories, ports, railways and energy reduce production. Factories lose the opportunity to earn, export products and pay taxes.
The next risk is a new wave of organization closures and job losses. Businesses are forced to spend more on electricity, generators, fuel, logistics and repairs. If revenues do not cover costs, some companies may cut staff, freeze salaries or stop working.
Stagflation can become a prolonged economic trap. People buy less, businesses lose customers, cut production and lay off workers.