Page 26 - Ukraine OUTLOOK 2025

preparing for a long-term confrontation with Ukraine and with us. We are not ready for what is coming our way in four or five years. It is time to shift to a wartime mindset and dramatically increase our defence production and defence spending," he stressed.
The Ukrainian parliament adopted the 2025 budget on November 19 by a majority of 257 votes. The country’s spending will amount to UAH3.94 trillion ($95.5bn) and its revenues to UAH2.34 trillion ($56.7bn).
The approved budget outlines total revenues of UAH2 trillion ($48.2bn) against expenditures of UAH3.6 trillion ($86.8bn). Defence will absorb UAH2.2 trillion ($53bn), amounting to 26.3% of Ukraine's projected GDP.
The vast majority of expenditures – UAH2.2 trillion ($53.3bn, more than 55% of the total budget) – will be spent on defence.
The largest sum (UAH1 trillion) will fund the operations of the armed forces, while another UAH488bn has been earmarked for the purchase, modernisation and repair of armaments, and a further UAH160bn for the operations of the National Guard of Ukraine.
The continuation of high defence spending in 2025 indicates that the authorities in Kyiv do not anticipate a reduction in the intensity of military action in the coming year. As in previous years following the outbreak of the full-scale war, the budget is projected to run a significant deficit of UAH1.6 trillion ($38.8bn). However, unlike in 2023, Ukraine now has stable sources of foreign funding.
Ukraine’s GDP growth will be 2.7%, its inflation rate 9.5% and the average annual exchange rate of the Ukrainian currency against the US dollar will be 45 hryvnias to one dollar, according to the 2025 budget forecast.
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