Ukraine's economic growth to slow to 2.7% in 2025, says deputy economy minister

KYIV (Reuters) - Ukraine's gross domestic product growth is expected to slow to 2.7% this year from probably around 3.6% in 2024, a deputy economy minister said on Thursday.

Andrii Teliupa told a round table that the government would continue its programmes channeling billions of hryvnias to support Ukrainian businesses adapting to wartime challenges.

Russia's full-scale invasion in February 2022 devastated the Ukrainian economy as millions of people fled the fighting, cities and infrastructure were bombed, and exports, supply chains, and logistics were disrupted.

In 2022, GDP plunged by nearly 30% and, despite growth in 2023 and 2024, the economy is still smaller than before the war. GDP increased by 5.3% in 2023.

Teliupa said the pace of economic growth slowed in the fourth quarter of 2024, but gave no figures.

The economy ministry's forecast for 2.7% growth in 2025 is below the 3-4% expected by most Ukrainian analysts and economists.

As the war nears its three-year mark, Ukraine is on the back foot along more than 1,000 kilometers of the frontline. Russia's forces are steadily advancing in the eastern Donetsk region, devastating villages and towns there.

In addition to security challenges, Ukrainian businesses are suffering from staff shortages as tens of thousands of Ukrainian men have been mobilised into the army and millions of refugees remain abroad.

Ukraine is also battling an energy crisis after Russia stepped up its bombardments of the power sector, knocking out about half of the available generating capacity and forcing long rolling blackouts across the country.

(Reporting by Olena Harmash. Editing by Mark Potter)