Ukraine’s Economic Growth Forecast for 2025 Reduced to 3%

Analysts from the investment company ICU have lowered the economic growth forecast for Ukraine in 2025 to 3%, down from a previous estimate of 3.4%. According to the company’s review, Ukraine’s real gross domestic product (GDP) grew by only 2.9% in 2024, which is significantly below market expectations.

This is reported by AgroReview

The reasons for this decline include a sharp decrease in crop yields, which negatively impacted agriculture and the food industry, as well as a reduction in government consumption due to a decrease in the budget deficit from 27% to 24% of GDP.

Agriculture and Economic Outlook

Despite the negative trends, agricultural production has the potential for significant growth in 2025, provided that no adverse weather conditions arise. However, the reduction in government spending relative to GDP will continue to hinder the economic recovery.

“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 a significant acceleration in the pace of economic recovery next year unless there is a sharp improvement in the security situation,” the analysts concluded.