Ukraine

Ukraine’s GDP grew by 8% in August: Institute of Economic Research

In August 2025, the Ukrainian economy showed growth of 8% in annual terms. The main driving force was the recovery of the agricultural sector: thanks to the later harvest, indicators in agriculture rose by 37%, which made it possible to compensate for the July drop and significantly support the overall growth rate. This is discussed in the report of the Institute of Economic Research and Political Consultations.

Processing industry recorded positive dynamics as well — its added value increased by 6%. This is due to stable demand, recovery of the food industry and government purchases of defense products.

Trade maintained a growth rate of 3%, which was made possible thanks to timely payments of wages and social assistance, as well as a gradual increase in wages in conditions of labor shortage.

Electricity production also showed a noticeable increase – by 10% compared to August 2024. If last year due to mass shutdowns the volume of generation decreased sharply, this year the industry demonstrated stability.

At the same time, a number of sectors are still under pressure. The mining industry recorded a 7% decline due to the loss of mines, while the transportation industry saw a decline of almost 10%, due to the cessation of gas transit, the temporary stoppage of oil transit, and the reduction of rail transportation.

Recall that in July the Business Activity Recovery Index (IBDA) decreased from 0.09 to 0.05. A value close to zero indicates that the business compared to last year does not record a significant deterioration, but also does not see significant growth.

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