Four years after the Russian invasion, Ukraine continues to defend itself while sustaining economic activity. The World Bank estimated in February 2025 that rebuilding Ukraine would cost over €506 billion, equivalent to three times its 2024 GDP, with defence spending alone at nearly $120 billion annually. The 2026 budget allocates UAH 2.8 trillion, or 58% of total expenditures, to defence. External financing needs for 2026-27 are projected at $60.8 billion, relying on the World Bank, IMF, EU, and UK.
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Despite the war, Ukrainian businesses display cautious optimism. The Business Activity Expectations Index in November 2025 stood at 49.4, reflecting challenges including air attacks, power shortages, rising raw material costs, and labour deficits, while solid consumer demand and infrastructure projects provide support.
Ukraine's foreign reserves reached a record $54.7 billion in December 2025, bolstered by EU and G7 funds, including a €90 billion EU loan secured against unallocated EU budget resources.
The furniture sector demonstrates notable resilience. Ukrainian exports to the EU reached €602 million in 2025, up 18% from 2021, with Poland as the main importer. Total production was estimated at €909 million in 2024, ranking Ukraine 13th–14th in Europe. Analysts highlight potential post-war growth as companies may relocate to Ukraine to reduce costs.
Source: www.biznes-meble.pl
