Ukraine's economy shrinks faster from fighting

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Ukraine's economy shrinks faster from fighting

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Ukraine’s economic decline is accelerating.

The government says GDP contracted by 4.7 percent in the second quarter from the same period last year.

That is as fighting between the army and pro-Russian separatists in the east took a heavy toll on industry and other economic activity.

The two eastern regions where the conflict is raging usually contribute nearly 16 percent of Ukraine’s GDP.

The economy may also take a hit from Western sanctions being imposed on Russia.

The International Monetary Fund now sees Ukraine’s GDP falling by 6.5 percent this year.