So without knowing anything about cdk, even if it is declarative, I don’t think your conclusion is applicable.
Terraform, the language, works differently. While it has variables, you can not store state in variables and depend on side effects based on the order you read/write such variables. Every assignment and execution order of resources is purely based on dependency order and not based on the order of the lines in your code.
One can configure the self same resource model using JSON, which can be trivially generated - as you correctly point out - using whatever language and paradigm you like.
However, since the language doing the generation does not influence the order of operations when applying the effects, the model is declarative. This is identical to the CDK configuring the CloudFormation engine via YAML. Indeed, there is a CDK for Terraform too...
The file is still declarative regardless, and the functions you write to create that file don't per se have side effects outside that file