The Gross Domestic Product (GDP) of Ukraine increased by 1.5% in January, driven by the construction sector, manufacturing industry, and domestic trade, as reported on the Ministry of Economy's website.
"The slowdown in economic growth in January was due to a decrease in exporter activity. However, high budget financing offset the temporary decline in goods export volumes. Key growth factors included the restoration of damaged critical infrastructure, ongoing capital reconstruction and road repairs in emergency areas, and housing construction," the ministry quotes First Deputy Minister of Economy Serhiy Sobolev.
According to him, there were also significant purchases of domestic products in the defense sector, which stimulated an increase in production in the machine engineering field.
It is noted that the agricultural sector is experiencing a decline in livestock production due to rising production costs. Additionally, a decrease has been recorded in the mining industry and transportation.
The Ministry of Economy identifies the main reasons for these changes as the shutdown of mines in the Donetsk region, located along the contact line. Supply disruptions in electricity also occurred due to massive missile attacks.
The ministry reminded that in December 2024, GDP growth was estimated at 1.7%. The GDP growth forecast included in the 2025 budget is set at 2.7% per year.
As reported, the World Bank (WB) in its "Global Economic Prospects" published on January 17 downgraded the GDP growth forecast for Ukraine in 2025 to 2% from 6.5% in the June report, but upgraded it for 2026 to 7% from 5.1%.
The National Bank of Ukraine has also adjusted its forecasts. Considering security risks and the challenging labor market situation, the NBU has lowered its real GDP growth forecast for 2025 to 3.6%.