Ukraine's real GDP growth in the first quarter of 2024 was lower than the National Bank expected due to limited budget spending and the blocking of the Ukrainian-Polish border. Writes UNN with reference to NBU data.
According to the NBU, real GDP growth in the first quarter of 2024 was weaker than expected, primarily due to restrained budget spending amid uncertainty over external financing. An additional factor was the blockade of the western border, which restrained the activity of certain types of business
The NBU notes that the stable operation of the maritime corridor, good weather, and rising domestic demand helped support the economy. The bank also forecasts a further revival of economic activity due to new successes in attracting international assistance and increased demand in the country and abroad.
"At the same time, the forecast for real GDP growth has been downgraded due to the effects of Russia's large-scale attacks on Ukraine's energy infrastructure. The economy is expected to grow by 3% in 2024 and by 4.5-5% in 2025 and 2026," the NBU said.
Recall
Ukraine's economy grew by 5.3% in 2023 despite the ongoing war with Russia, thanks to high business adaptability, stabilization of the energy sector, and loose fiscal policy.