Q1 2025 macro situation in Ukraine better than initially expected - Finance Ministry

MOSCOW. April 17 (Interfax) - The macro situation in Ukraine in the first quarter of 2025 turned out to be better than initially expected due to the stable operation of the energy sector and industry in the winter, Ukrainian Finance Minister Sergei Marchenko said.

"Our macro situation in the first quarter of the 2025 was better compared to our projections," Ukrainian media quoted Marchenko as saying in a statement at the Center for Economic Strategy's web conference, titled 'Ukraine's budget resilience over three years: role of international support'.

Since expectations regarding power outages did not come true, some economic development results were even better than last year's, he said.

At the same time, Marchenko declined to offer any more specific estimates of GDP dynamics.

He also believes that Ukraine may "gradually reduce its dependence on international aid."

"I mean in a step-by-step manner, not fast. We have many questions as to how we can balance our budget in 2026 based on the current commitments we have undertaken as part of the programs agreed with the [International Monetary Fund] IMF," Marchenko said.

Ukrainian Deputy Prime Minister and Economy Minister Yulia Sviridenko said on March 18 that the country's GDP growth in January-February 2025 was estimated at 1.1%.

As reported, on February 28 the IMF cut its 2025 economic growth forecast for Ukraine by 0.5 percentage points to 2%-3%. Other institutions have also downgraded their Ukraine GDP growth forecasts for 2025, with the European Bank for Reconstruction and Development cutting it from 4.7% to 3.5%, the World Bank from 6.5% to 2%, and the National Bank of Ukraine from 4.1% to 3.6%. Meanwhile, Ukraine's 2025 budget is based on a 2.7% GDP growth projection.