Analysts from the Institute of Economic Research noted that Ukraine’s real gross domestic product grew by 2% in 2025. However, they stated that the pace of economic recovery could have been significantly higher if it weren’t for the widespread destruction caused by Russia. The gas extraction industry, energy networks, as well as port and railway infrastructure were particularly hard hit.
This is reported by Business • Media
Main Challenges for Business in 2025
In November 2025, power outages once again became one of the top three obstacles to doing business in Ukraine — the first time since December 2024. Throughout the year, companies faced major difficulties including labor shortages and security threats. Entrepreneurs also noted rising prices for raw materials and goods, a decrease in demand for products and services, as well as logistical challenges.
Sectoral Features of Economic Growth
Despite the difficulties, the grain harvest in 2025 exceeded previous expectations, helping to mitigate the negative impact of reduced agricultural production on economic growth. At the same time, demand for defense industry products grew, positively affecting the development of machine engineering. Domestic demand for metallurgical products remained high, supporting the growth of the sector. The trade sector showed positive dynamics due to rising real household incomes.
“In November 2025, for the first time since December 2024, power outages returned to the top three obstacles to business operations.”
According to economists’ forecasts, in 2026, the growth rate of Ukraine’s real GDP will remain moderate and exceed 2% only slightly.