The agency highlights issues with energy supply as a main reason behind expected slower economic growth.
"Destruction of power generation and transmission infrastructure is negatively impacting Ukraine's economy, interrupting four consecutive quarters of substantial GDP growth," the EBRD wrote in its statement.
"Due to this, the bank has revised its 2025 growth forecast to 4.7%, down from 6% in its May report," the EBRD noted.
The EBRD's updated forecast anyway remains more optimistic than those of Ukraine's government (2.7%), the IMF (2.5–3.5%), and the National Bank of Ukraine (4.1%).
Regional economist at the EBRD, Dimitar Bogov, explained to Interfax-Ukraine that the bank expects improvements in Ukraine’s energy sector and defense industry in the coming year.
"We believe the energy supply situation will improve compared to this year," he said.
"A lot of effort is currently being made to enhance the situation, which is likely to show results next year. Moreover, the EU recently announced increased support to boost internal capacity and energy exports to Ukraine."
The EBRD expects a significantly better energy supply situation by 2025, which will positively impact domestic production.
"As we've already seen this year, the Black Sea corridor is enabling the export of Ukrainian goods, and military production is gaining momentum, which could lead to better outcomes next year," Bogov added.
Earlier, Fitch Ratings raised its global economic growth forecast for 2024 to 2.7%, up from 2.6% predicted in June.
"We have revised upward growth forecasts for the U.S., UK, Brazil, and Russia for this year," Fitch noted.
The agency now expects U.S. GDP to grow by 2.5% in 2023, up from the 2.1% forecasted in June.
However, global GDP growth is expected to slow to 2.5% in 2025, with U.S. growth slowing to 1.6% due to the weakening of "fiscal momentum" and the likely gradual slowdown in consumer spending and income growth.