According to a new report from the investment company ICU, Ukraine’s economic growth is projected to be 3% in 2025, a decrease from the previous forecast of 3.4%. Analysts note that Ukraine’s real gross domestic product (GDP) grew by only 2.9% during 2024, which significantly falls short of market expectations and the company’s prior forecasts.
This is reported by Finway
Economic growth in Ukraine last year was significantly weakened by a sharp decline in harvests, which negatively impacted agriculture and the food industry. Additionally, a reduction in government consumption due to a decrease in the state budget deficit to 24% of GDP compared to 27% the previous year also affected the economic situation.
Prospects for Agriculture in Ukraine
Analysts predict that agricultural production is expected to increase in 2025, provided that no adverse weather conditions arise. However, the reduction in government spending relative to GDP will continue to hinder the recovery of the economy.
“We believe that our previous GDP growth forecast for 2025 was somewhat optimistic, so we are lowering it to 3%. We also do not expect significant acceleration in the pace of economic recovery next year unless there is a sharp improvement in the security situation,” analysts concluded.