EBRD lowers Ukraine’s 2025 growth forecast

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.