Ukraine’s public debt rises above 105% of gross domestic product

Saturday 29 August 2026 - 12:30

By: Azzat Manal

Ukraine’s public debt rises above 105% of gross domestic product

Ukraine’s public debt reached an estimated 105.7% of the country’s gross domestic product by the end of July, highlighting the growing financial pressure facing Kyiv as it continues to rely heavily on external financing.

According to figures cited from Ukraine’s State Statistics Service, the country’s gross domestic product stood at approximately 8.931 trillion hryvnias at the end of 2025, equivalent to around $202.6 billion. The latest debt-to-GDP ratio therefore places government liabilities above the size of the Ukrainian economy.

The ratio has increased sharply over the past several years. At the end of 2021, Ukraine’s public debt was equivalent to 48.9% of GDP. The figure climbed to 78.4% in 2022, followed by 84.4% in 2023 and 91.2% in 2024. By the end of 2025, government debt had already exceeded the size of the economy, reaching 101.2% of GDP.

The continued increase reflects the severe fiscal challenges faced by Ukraine in recent years. Large budget deficits have encouraged the government to depend on international financial assistance and borrowing to maintain public spending and cover financing gaps.

Western financial support has become an important component of Ukraine’s fiscal strategy, although new assistance packages can involve lengthy political discussions among partner countries. At the same time, international partners have increasingly encouraged Kyiv to strengthen domestic sources of revenue and reduce its dependence on external funding.

Separate figures from Ukraine’s Finance Ministry indicated that the country’s combined domestic and external government debt reached a record level of approximately $214.18 billion at the end of July.

The rapid rise in the debt burden is likely to remain a major economic challenge for Ukraine. The sustainability of public finances will depend not only on future international support, but also on economic growth, government revenues, borrowing costs and the country's ability to manage its accumulated liabilities.

With the debt-to-GDP ratio now well above 100%, Ukraine faces a difficult balance between financing immediate economic needs and maintaining long-term fiscal stability.