Ukraine economy shrinks faster as conflict takes its toll
KIEV, July 30 (Reuters) - Ukraine's economic decline has accelerated as fighting between the army and pro-Russian separatists in the east took a heavy toll on industry and other economic activity in the last three months.
The national statistics office said on Wednesday the economy contracted by 4.7 percent in the second quarter compared with the same period last year and shrank by 2.3 percent in the three months from April, when the separatist rebellion began, to June.
That followed a 1.1 percent fall in gross domestic product in the first three months of the year and reflected the impact of the conflict on industry in two eastern regions that usually contribute almost 16 percent of Ukraine's GDP.
"The main reason (for the drop) is that we have military activity in which people get killed, are displaced and leave their homes," said Oleksandr Valchishen of InvestCapital Ukraine. "We're in a state of a shock."
http://www.trust.org/item/20140730124641-4mzzb/