Ukraine's GDP grew by 0.7% in February 2025, and by 1.1% in the first two months of the year. The slightly lower start to the year reflects the uneven growth trends of the previous year. At the same time, we are now running even slightly above our forecast for QI. The main growth drivers remain the construction industry, manufacturing and domestic trade. This was announced by First Deputy Minister of Economy of Ukraine Oleksii Sobolev.

"The slowdown in economic growth in February was due to missile attacks on gas production facilities and a temporary decline in exporters’ activity. However, high budget funding for the restoration of damaged critical infrastructure, housing construction under the eVidnovlennia and eOselia programs, as well as purchases of domestic defence products offset these negative factors," said Oleksii Sobolev.

GDP growth in February 2025 was also driven by a recovery in domestic (retail) trade. Consumer sentiment continued to improve in February, a trend that has been observed for four months in a row.

Business recovery and support programmes are contributing to the development of the manufacturing industry, in particular through international financial assistance. Production of construction materials, machinery, and food products is showing positive dynamics. The defence sector is expanding its production capacity amid growing defence orders. The metallurgy sector is also picking up, with production of iron, steel, and rolled products increasing.

Meanwhile, the agricultural sector saw a decline in livestock production due to higher production costs. There was also a decline in the mining industry due to missile attacks on gas production infrastructure and a drop in transport due to a temporary decline in exporters' activity.

As a reminder, GDP growth is estimated at 1.5% in January 2025. Last year, the growth was uneven: 6.5% in QI 2024 compared to QI 2023, 3.7% in QII, and 2.0% in QIII. The GDP growth forecast included in the 2025 budget is 2.7% for the year.