The World Bank, in its updated macro forecast for Europe and Central Asia, confirmed its forecast for Ukraine's gross domestic product (GDP) growth in 2025 at 2%, UNN reports, citing the document.
Growth is projected to slow to 2% in 2025. From 2026, growth is expected to accelerate to 5.2%, amid an expected cessation of hostilities, which will lead to increased investment, productivity and labor force growth…
The World Bank also forecasts that in 2025, the state budget deficit will remain high - about 20% of GDP. A significant reduction in the deficit is possible only if military spending is reduced after the end of hostilities. However, even in the medium term, the fiscal gap will remain above 5% of GDP due to reconstruction and defense needs.
The World Bank stressed that economic growth in Ukraine has already slowed from 5.5% in 2023 to 2.9% in 2024. This was influenced, in particular, by a decrease in external demand, a shortage of labor and disruptions in electricity supply due to hostilities.
Let us remind
Earlier, in January, the World Bank worsened its forecast for 2025 to 2%. At the same time, global growth in 2025-2026 will remain at 2.7%.