In the first quarter of 2025, Ukraine’s nominal gross domestic product (GDP) reached 1.9 trillion hryvnias. According to the State Statistics Service, the real GDP growth compared to the same period in 2024 was only 0.9%.
This is reported by Finway
Low Economic Growth Rates and Reasons for Slowdown
Analysts from the investment company ICU noted that economic recovery remains slow due to limited resources for growth—both labor and capital. Despite some revival in private domestic consumption, supported by rising incomes of workers in the private sector, a key restraining factor remains the reduction in government consumption.
“Economic growth will remain slow, as the resources for recovery—both labor and capital—will be limited. Moderate recovery will be supported by domestic private consumption due to rising incomes of workers in the private sector. At the same time, the reduction in government consumption will remain a key obstacle to GDP growth. For 2025, we are lowering our economic growth forecast to 2.5% due to a worse-than-expected harvest,” the review states.
Challenges for the Government and Inflation Trends
Among the main challenges for the government is the search for an additional 10–15 billion dollars beyond the already promised volume of financial assistance from international partners for 2026. At the same time, experts note that inflation in June sharply changed the dynamics—steady price growth slowdown is expected in the coming months.