Ukraine's economy is growing slower: what caused the slowdown to 1.5%
Kyiv • UNN
In January 2025, Ukraine's GDP grew by 1.5%, compared to 1.7% in December 2024. Growth is supported by construction, industry, and trade, but exports and the mining sector are in decline.
Ukraine's GDP growth slowed to 1.5% in January from 1.7% a month earlier, with economic growth supported by construction, industry and trade, the Economy Ministry said on Monday, UNN reports.
In January 2025, the Ukrainian economy grew by 1.5%. Growth was driven by the construction industry, manufacturing, and domestic trade
"The slowdown in economic growth in January was due to a decline in exporters' activity. However, high budgetary funding compensated for the temporary drop in commodity exports. The key growth factors were: restoration of damaged critical infrastructure, major reconstruction and repair of roads in emergency areas, and housing construction. Purchases of domestic defense products also remained high, which in turn stimulated an increase in production in the machine building sector," Sobolev said.
According to the Ministry of Economy, in January, the manufacturing industry, domestic trade, and construction continued to show positive dynamics. At the same time, agriculture saw a decline in livestock production due to higher production costs. There was also a drop in the mining and transportation sectors. "The reasons are the shutdown of mines in Donetsk region located on the contact line. There were also disruptions in electricity supply due to massive missile attacks," the Ministry of Economy said.
Addendum
In December 2024, according to the Ministry of Economy, GDP growth is estimated at 1.7%.
The GDP growth forecast included in the 2025 budget is 2.7% per year.
