Ukraine’s GDP growth quickens to 3.8% in Sept 2024, totals 4.5% in M9 – ministry

Ukraine’s gross domestic product (GDP) grew 3.8% (± 1%) in September 2024 year-on-year versus 0.3% in August and 1.1% in July, Ukrainian media said, citing the Ukrainian Economy Ministry’s preliminary estimates published on Friday.

The ministry’s report puts GDP growth in the country at 4.5% (±1%) in January-September 2024 year-on-year compared to 3.9% in January-August, 4% in January-July, and 4.1% in the first half of the year.

“In September, agriculture showed the largest increase due to the early harvesting of late crops. Growth was also observed in transport and construction. For the second month in a row, trade, industry and construction companies have been improving their assessments of their activities in the near future, and one of the key reasons for this optimism is the normalization of the situation in the energy sector,” the report quotes Ukrainian First Deputy Prime Minister and Economy Minister Yulia Sviridenko as saying.

Ukraine’s 4.5% economic growth in January-September 2024 is in line with the government’s forecast, Sviridenko said.

This year’s GDP growth in real terms has been projected at 3.5%.

The revival in domestic demand and the functioning of the Ukrainian sea route unilaterally opened by Kiev backed up positive trends in industry, the report said. Demand for engineering products, construction materials and household goods has been on the rise.

The industrial recovery positively impacted transport, including an increase in transportation by rail and cargo handling at seaports, it said. There has been an increase in the number of construction projects due to the restoration of critical infrastructure and road repairs. In addition, domestic trade saw a rise due to stronger consumer demand and improved supplies of goods. Agriculture is also demonstrating positive dynamics due to the early start of the harvesting campaign for late crops, while livestock production is growing due to stable demand and government support.

Meanwhile, skilled staff shortages have been having a negative impact on business expectations and economic activity.

Source Link