Ukraine's economy is growing: facts and reasons for positive dynamics in February 2025

In February 2025, Ukraine's gross domestic product (GDP) showed growth of 0.7%, which is an important signal for the country's economy. According to the results of the first two months of the year, the overall growth was 1.1%. These data were announced by Oleksiy Sobolev, First Deputy Minister of Economy of Ukraine, who noted that such indicators exceed the initial forecasts for the first quarter.

The slower start of the year compared to expectations is explained by uneven economic growth in 2024, but the overall dynamics remain positive so far. Economic growth in February and early 2025 was the result of several key factors that support stability and development in a difficult situation.

The main factors contributing to economic growth include the construction industry, the processing industry, and domestic trade. High funding from the state budget allows for the active restoration of critical infrastructure, as well as the implementation of programs related to housing construction, in particular "eReconstruction" and "eHousing". These initiatives not only support the economic process, but also contribute to the creation of new jobs.

Another important factor that compensates for the impact of negative factors is the purchase of products from the domestic defense-industrial complex. These purchases not only support the economy in wartime conditions, but also help compensate for losses from missile strikes on gas production facilities and a temporary reduction in exports of Ukrainian products.

Another aspect of the positive dynamics is the revival of domestic consumer demand, which has been observed for the fourth month in a row. This contributes to the development of the processing industry, for which the implementation of business support programs and international financial assistance is important. Products manufactured within the framework of these programs include building materials, machine-building products, and food products, which ensures stable demand in the domestic market.

In the context of a favorable economic situation, positive trends are also noted in the defense-industrial complex. The expansion of production capacities is ongoing here, which is a direct consequence of the increase in state orders for defense products. At the same time, metallurgical enterprises are also intensifying their work, increasing the production of pig iron, steel and rolled materials, which in turn supports the positive dynamics in the industry.

Thus, although the Ukrainian economy faced certain difficulties at the beginning of 2025, key factors such as the construction industry, support for the defense complex and the activation of domestic demand helped to ensure stable development. International assistance also plays an important role in this, supporting business and contributing to strengthening the country's economic stability.