Ukraine’s Real GDP Growth Reached 1.1% in the First Quarter

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Ukraine’s Real GDP Growth Reached 1.1% in the First Quarter

According to data from the Institute of Economic Research, Ukraine’s real gross domestic product (GDP) grew by 1.1% in the first quarter of 2025 compared to the same period last year. In March, there was an improvement in the economic situation, with real GDP growth reaching 1.3%. This was made possible by better access to electricity and a gradual recovery in demand.

This is reported by Finway

It is worth noting that in the previous months, the figures were less optimistic: in January, growth was 1.2%, and in February, it was only 0.7%.

Sectors with Positive Growth

Among the sectors that demonstrated growth in gross value added, the following can be highlighted:

  • Industry: a growth of 2.5% in March was driven by moderate growth in domestic demand and exports, despite Russian attacks on Dnipro, Kryvyi Rih, and Kharkiv.
  • Trade: a growth of 1.2%, although wholesale trade volumes are decreasing due to the rise in direct sales.

Sectors with Decline

Unfortunately, some sectors experienced a decline:

  • Agriculture: a decline of approximately 3% in March was a result of decreased livestock production and the advance of Russian troops.
  • Mining Industry: a drop of more than 3% due to the temporary occupation of coal mines in the Donetsk region and attacks on gas extraction.
  • Energy: a decrease of nearly 5% due to Russian strikes on energy infrastructure.
  • Transport: a decline of 6% in March due to a slowdown in railway freight transport, particularly following cyberattacks and the suspension of gas transit since the beginning of the year.