Ukraine’s GDP grew by 1.5% in January: which industries contributed to the growth
17 February 12:28
In January 2025, Ukraine’s gross domestic product (GDP) increased by 1.5% year-on-year. The main factors of economic growth were the development of the construction industry, the processing industry and the intensification of domestic trade. This was reported by the Ministry of Economy, "Komersant Ukrainian" informs
What influenced economic growth?
Oleksiy Sobolev, First Deputy Minister of Economy of Ukraine, said that despite the slowdown in economic development due to a decline in export activity, the high level of budget financing helped to compensate for the drop in exports.
The experts point out the key factors that supported economic growth:
- Restoration of critical infrastructure damaged by the war.
- Major reconstruction and repair of emergency road sections.
- Active housing construction, which helped attract investment in the real estate sector.
- Procurement of products for the defense industry, which stimulated the development of machine building.
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Which industries showed growth?
Manufacturing, domestic trade, and construction remain the drivers of the Ukrainian economy. However, not all sectors were able to maintain their positive momentum.
Problematic sectors:
- Agriculture saw a decline in livestock production due to rising costs.
- There was a drop in the mining and transportation sectors. The reasons for this were the suspension of operations of mines in Donetsk region located on the contact line. There were also disruptions in electricity supply due to massive missile attacks.
Growth prospects in 2025
In December 2024, Ukraine’s GDP grew by 1.7%. According to the forecasts included in the state budget, the country’s economy is expected to grow by 2.7% in 2025.
Despite the challenges, the government plans to continue to stimulate construction, infrastructure development and support production, which should have a positive impact on the pace of economic recovery.
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