Ukraine’s economy grew by 1.5% in January

Construction, industry and trade supported economic growth in the beginning of the year

In January 2025, Ukraine’s gross domestic product grew by 1.5%, maintaining positive dynamics despite challenges in the export sector. The main drivers of growth were the construction industry, manufacturing and domestic trade, said First Deputy Minister of Economy Oleksiy Sobolev.

According to him, the growth rate slowed somewhat due to a decline in exports, but active budget financing helped to offset this impact. The restoration of critical infrastructure, road reconstruction and housing construction were important factors supporting the economy. Demand for defence products also remained strong, which contributed to the growth of production in the machine building sector.

Despite the overall positive dynamics, some sectors of the economy faced difficulties. Agriculture saw a decline in livestock production due to rising costs. The mining industry suffered a decline due to the shutdown of mines in Donetsk region, and the transport sector was hit by power outages caused by massive missile attacks.

In December 2024, economic growth was 1.7%, and the annual forecast for 2025 is for a 2.7% increase in GDP. At the same time, further dynamics will depend on the situation in the energy market, exports and macroeconomic stability in the country.

Independent analysts expect Ukraine’s GDP to grow by an average of 3.7% y/y in 2025, to $199.5 billion. The war and damage to the energy infrastructure remain the key constraints to economic growth.