The real gross domestic product (GDP) of Ukraine grew by 2.9% in 2024. Despite the fact that the economy has shown growth for the second consecutive year amid a full-scale war, the pace of recovery has slowed compared to 2023, when GDP increased by 5.5%.
This is reported by Business • Media
The National Bank of Ukraine (NBU) pointed to several reasons for the slowdown in economic growth. Among them are the deterioration of the security situation, the restoration of electricity shortages, and low harvests. At the end of last year, the gross added value (GAV) in agriculture decreased by 7.3%, while the GAV in the energy sector fell by 2.7%.
The Extractive Industry Sector Showed Positive Results
At the same time, for the first time in the years of war, the indicators of the extractive industry improved, with growth of 3.6%. The manufacturing industry also demonstrated positive results with an increase of 6%. However, the trade sector suffered losses of 4.1%. The highest growth was recorded in the financial sector, at 27.4%. The GAV in the IT sector grew by 8.3%, and in construction, it increased by 16.2%.
Prospects for Ukraine’s Economy in 2025
The National Bank of Ukraine forecasts the preservation of GDP growth rates in 2025. The main factors for this will be improved harvests, reduced energy constraints, and an increase in external demand. However, the war will continue to hinder the recovery of the economy due to labor shortages, infrastructure destruction, and losses of production capacities.