Ukraine’s Real GDP Growth for Q1 2025 Reached 0.9%

In the first quarter of 2025, Ukraine’s nominal gross domestic product reached ₴1.9 trillion. According to the State Statistics Service, compared to the same period last year, real GDP increased by only 0.9%. This indicates a continuation of low economic growth rates in the country.

This is reported by AgroReview

Economic Growth Forecast Downgraded

Analysts from the investment company ICU have updated their estimates regarding the economic dynamics for 2025, lowering the GDP growth forecast to 2.5%. One of the main reasons for this revision was a worse-than-expected harvest of agricultural crops. The report also notes that opportunities for economic recovery will remain limited due to a shortage of labor and capital.

“Economic growth will remain slow, as the resources for recovery – both labor and capital – will be constrained. 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 barrier to GDP growth. For 2025, we are lowering the economic growth forecast to 2.5% due to a worse-than-expected harvest,” the review states.

Challenges for the Government and Inflation Trends

At the same time, the Ukrainian government faces the challenge of finding an additional $10-15 billion in financial support, exceeding the already announced assistance from international partners for 2026. This is one of the main challenges for stabilizing the economic situation in the country.

Analysts also pointed out inflationary processes: in June, a noticeable slowdown in the rate of price growth was recorded. This trend is expected to continue, ensuring a steady decline in inflation in the coming months.