Ukraine's economy up 1.5% in January

ISTANBUL

Gross domestic product (GDP) in war-torn Ukraine rose 1.5% in January, the country’s Economy Ministry said Monday.

"The drivers of growth remain the construction industry, the processing industry, as well as domestic trade," said Oleksiy Sobolev, Ukraine’s first deputy economy minister.

He stressed that a drop in exports caused the growth rate to fall significantly, but that this effect was partially mitigated by aggressive budget funding.

Road rebuilding, housing development, and the restoration of vital infrastructure all played significant roles in bolstering the economy.

Production in the machine construction industry rose as a result of the continued high demand for defense equipment, he said, as the Russia-Ukraine war is just days away from its third anniversary.

A decline in animal product output was seen in agriculture due to rising production costs, he added.

The transportation and mining industries also saw a downturn. One of the reasons is that mines on the contact line in the eastern Donetsk region – which is at least partially under Russian control – have ceased operations. Massive missile assaults also caused interruptions in the electrical supply, said the ministry.

Ukraine's GDP grew 1.7% in December, with GDP growth of 2.7% expected for 2025.