Ukraine

Ukraine’s economy grew by 3.5% in 2024, driven by domestic demand but constrained by destructions in the energy sector. In 2025, 2026 economic growth is projected to reach 2.9% and 3.2%. Private consumption and investment will be key drivers. However, export growth will remain constrained, while imports are expected to expand. Nevertheless, the current account is projected to remain balanced in 2025, supported by the planned USD 50 bn financing under the G7 Extraordinary Revenue Acceleration Loans (ERA) initiative, before returning to a deficit in 2026. Inflation is forecast to remain in double digits on average in 2025. However, in 2026, with an improved agricultural harvest and a slowdown in energy price growth, inflation is expected to approach the National Bank’s target range.