Ukraine's economy will slow down this year.
The World Bank predicts a slowdown in Ukraine's economic growth in 2025 to 2.0% if the war continues throughout the year.
This is reported in the World Bank's Global Economic Prospects for January 2025.
In June, 2024 The World Bank projected Ukraine's average GDP growth rate of 5.8% per year in 2025-2026, assuming that active hostilities continue in 2024 and then moderate.
Today, the World Bank estimates that growth in Ukraine will slow to 3.2%, in part due to reduced energy capacity and winter power outages that have held back trade and industrial production. Despite these ongoing obstacles and attacks on infrastructure, the economy has shown growth.
“Ukraine's growth is projected to slow to 2% in 2025, assuming active hostilities continue throughout the year. A robust recovery of 7% is expected in 2026, assuming active hostilities cease, supported by investment in consumption and reconstruction,” the report says.
Recall that the IMF reported that massive missile and air strikes by the terrorist Russian army on Ukrainian civilian infrastructure could affect macroeconomic forecasts for Ukraine in the near term.