Slowing down capital investments in Ukraine – opportunities for investors!

Slowing down capital investments in Ukraine – opportunities for investors!

In the first quarter of 2025, Ukraine recorded a significant increase in capital investments, measured at 32.5% compared to the same period last year. The total amount of capital investments reached 123.8 billion UAH (about 3 billion USD). However, despite this increase, the level of investment remains behind the previous quarter, where an increase of 48.1% was achieved. These developments were made by UBN reported.

The main source of this financing is internal funds of companies and organizations, which account for 77.1% of the total volume. Other sources of financing include the state budget (3.5%), consumer housing (6.5%), local budgets (2.7%), and bank and other credit financing (4.7%). Foreign capital accounts for only 0.3% of investments.

Industry-specific growth

A remarkable growth in capital investments was observed in various sectors. In particular, the transport and warehousing sector stood out, with an increase of 140% to UAH 15.7 billion. The agricultural sector followed with 46.9% to UAH 13.6 billion. The industrial sector also experienced solid growth of 25% to UAH 48.7 billion, while trade increased by 55.8% to UAH 11.3 billion. The IT sector, construction and public administration and defense also recorded significant increases.

Given these positive trends, investor confidence in Ukraine remains strong. According to the Ukraine Monthly Report – February 2025, published by UkraineInvest is supported, Ukraine continues to be seen as an attractive destination for investments.

Economic outlook

Ukraine's gross domestic product (GDP) forecast is for 3.9% growth in 2025, indicating sustained economic recovery and long-term stability. Confidence in international business is expected to be further boosted by an expected 12% increase in foreign direct investment (FDI). A survey of companies found that 53% of them expect sales to grow in 2025, while 40% of companies find that they can return to pre-war sales figures.

In addition, Ukraine continues to receive financial and military support, which contributes to economic stability and investor confidence. The defense sector has emerged as a key economic driver, encouraging local manufacturing and international cooperation.