The war in Ukraine is expected to continue throughout 2025: The World Bank has released its forecast
The World Bank predicts that Ukraine's economic growth will slow to 2% in 2025.
This forecast is based on the assumption that the war will persist for the entire year, as stated in the January report Global Economic Prospects.
According to the World Bank's estimates, growth in Ukraine slowed to 3.2% in 2024, reflecting challenges such as reduced energy capacity and winter power outages that hindered trade and industrial production. Despite these obstacles and ongoing attacks on infrastructure, the economy has shown considerable resilience.
"Growth in Ukraine is projected to slow to 2% in 2025, assuming that active hostilities continue throughout the year. A robust recovery of 7% is expected in 2026, provided that active fighting ceases and is driven by investments in consumption and reconstruction," the report states.
It is noted that over the past year, the conflict has directly affected 41% of Ukraine's population, highlighting significant human and economic losses. Military expenditures on defense accounted for about one-third of GDP in 2023.