Ukraine’s economy has slowed down: National Bank names reasons
16 October 13:39
Ukraine’s economic growth slowed in the second quarter of 2025. This was reported by the press service of the National Bank of Ukraine, "Komersant Ukrainian" reports
According to the NBU, real GDP grew by only 0.7% year-on-year, while in the first quarter the figure was 0.9%.
The main factors restraining economic growth are the consequences of the full-scale war: the loss of people, territories, production facilities and infrastructure.
The decline in agriculture also contributed significantly to the slowdown in the recovery in the second quarter.
Nevertheless, consumer demand remained stable, with retail trade growing by 4.7%, which partially supported economic activity.
The agricultural sector slowed down due to unfavorable weather conditions. Late harvesting led to a drop in gross agricultural value added by more than 23%. Part of the harvest is expected to be harvested in the third quarter, which may improve performance.
At the same time, industry, construction, and energy are showing positive results: the energy sector grew by 5%, and construction by more than 12%.
NBU forecast for the second half of the year
The NBU expects the economic situation to improve in the second half of the year due to an active harvest, growing domestic demand, and budget spending. However, the NBU warns that security risks and shelling of critical infrastructure remain the main threats to economic recovery.
This will be supported by a pickup in harvesting, robust domestic demand, and increased fiscal stimulus amid expanded budget spending. At the same time, the deteriorating security situation and increased shelling of infrastructure in recent months will restrain economic growth.
