The World Bank has left unchanged its forecast of a slowdown in Ukraine’s GDP growth in 2025 to 2% from 2.9% in 2024 but downgraded its estimate of economic recovery in 2026 from 7% to 5.2%.
Expectations for 2025-2026
According to the bank’s estimates, economic growth in Ukraine will slow to 2% in 2025 but may accelerate to 5.2% in 2026, provided that the hostilities end and reconstruction begins. In 2024, GDP growth was 2.9%, significantly lower than the 5.5% in 2023, due to the ongoing hostilities.
Factors behind the slowdown
The World Bank has identified the key reasons for the slowdown in economic dynamics: reduced external demand, labor shortages, and power outages caused by the war. These factors continue to hold back economic recovery.
