Ukraine stands to lose 1 percent GDP to border closure

Gross Domestic Product (GDP)
Gross Domestic Product (GDP)

Ukraine is at risk of losing up to 1 percent of its gross domestic product (GDP) this year due to the blockade of its border with Poland by protesters from Polish carriers, the Ukrinform news agency reported Friday, citing a parliament official.

The Ukrainian economy which was supposed to grow by 3.5 percent this year will increase between 2.5 percent and 2.8 percent, said Yulia Klymenko, the first deputy chairperson of the Parliamentary Committee on Transport and Infrastructure.

Ukraine has already lost 1.4 billion hryvnias (about 38 million U.S. dollars) of its export turnover due to the blockade resulting from the strike of Polish carriers, Klymenko said.

The blockade has disrupted not only business supply chains, but also the deliveries of military equipment to Ukraine, the official said, noting the strike concerns Ukraine’s national security.

Since Nov. 6, Polish carriers have been staging protests at several checkpoints on the Ukrainian border, demanding the return of the permit regime for Ukrainian haulers crossing into the EU.

The protesters blocked roads near the crossing points, resulting in large queues, with thousands of trucks stalled at the border.

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