Russian army remains determined to reclaim lost positions south of Kotlyne
EBRD lowers Ukraine’s 2025 growth forecast
The European Bank for Reconstruction and Development (EBRD) has cut Ukraine’s 2025 economic growth forecast from 4.7% to 3.5%, citing war-related challenges and rising inflation
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The EBRD reported the information in its Regional Economic Prospects report.
Despite these setbacks, Ukraine's economy grew by 3% in 2024, though growth slowed from over 5% in the first half of the year to around 2% in the second.
Inflation was driven by higher electricity prices, utility tariff adjustments, and currency depreciation.
The EBRD report highlights the resilience of Ukrainian businesses, a stable Black Sea trade corridor, and increased military procurement as key factors supporting growth.
However, Ukraine’s budget deficit is expected to reach 19.4% of GDP in 2025, covered by $38.4 billion in external financing, including $13.7 billion from the EU and $22 billion from G7 nations.
Looking ahead, the EBRD forecasts 5% GDP growth in 2026, contingent on a ceasefire agreement this year.
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