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Blockade of the Polish border affected, but Ukraine's economy showed growth in November - Ministry of Economy

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The blockade of the border by Polish carriers in November was a major negative factor for exporting and importing producers by road. However, Ukraine's economy continues to grow despite the blockade. According to preliminary estimates of the Ministry of Economy, GDP growth in November 2023, compared to November last year, is about 4% (±2%), the Ministry of Economy reported on Wednesday, UNN writes.

Details

As a result, in January-November 2023, economic growth is estimated at 5.5% compared to the same period last year.

"In November 2023, the almost month-long blockade of the Polish-Ukrainian border by Polish road carriers was a major negative factor for exporting manufacturers and manufacturers dependent on imported raw materials for the delivery of products by road. At the same time, the operation of the Ukrainian Maritime Corridor allowed us to partially compensate for the losses in the economy caused by the blockade of the Polish-Ukrainian border," said Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine.

According to her, this was primarily used by agricultural and metallurgical producers, metal ore mining companies, and railroad carriers.

"According to our estimates, the positive factors in November slightly outweighed the balance of influence on GDP, and as a result, according to preliminary operational estimates of the Ministry of Economy, GDP growth was observed at 4%," Svyrydenko said.

Also in November, consumer price growth reportedly slowed to 0.5%, according to the State Statistics Service (after 0.8% in the previous month). Overall, the annual inflation rate continued to decelerate, from 5.3% in the previous month to 5.1% in November. This is even less than in some EU countries. For example, according to Eurostat, in November, consumer inflation was 8% in the Czech Republic, 7.7% in Hungary, 7.4% in Iceland, 6.9% in Slovakia/Romania, 6.3% in Poland, and 5.5% in Croatia/Bulgaria.

"Currently, the moderate dynamics of consumer price growth is comparable to the inflation rate in European countries whose economies are not subject to war shocks. This is an additional confirmation of the integrity and stability of the domestic economy. The current inflationary trend and the factors that shape it indicate that expectations of low inflation are justified," Svyrydenko summarized.

ВВП України зростає другий квартал поспіль - Держстат11.12.23, 16:49

Julia Shramko

Economy

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