Ukraine's economy grew by 3.5% in January: Suspension of the blockade on the Polish border helped
Kyiv • UNN
According to the preliminary estimate of the Ministry of Economy of Ukraine, GDP grew by 3.5% in January due to the expansion of logistics capacities and increased investment demand.
In January, GDP grew by 3.5% due to the expansion of logistics capabilities and increased investment demand. This is the preliminary estimate of the Ministry of Economy compared to January 2023, UNN reports.
Details
"In the first month of 2024, the Ukrainian economy demonstrates a continuation of the recovery trend. According to preliminary data, the Ministry of Economy estimates GDP growth in January at 3.5% (±1%) compared to January 2023," the Ministry said in a statement.
As noted, growth was positively affected:
- growing investment demand;
- lifting the blockade of the Polish-Ukrainian border by Polish road carriers;
- the work of the Ukrainian Sea Corridor.
"The Ukrainian economy continues to adapt and acquire the characteristics of a wartime economy," the agency said.
According to preliminary estimates, the main sectors of the economy showed positive dynamics in January. The transportation sector was supported by an increase in domestic rail transportation and cargo handling at seaports. Continued recovery in economic activity, driven in particular by metallurgy, metal ore mining and agricultural processing, and energy, as indicated, led to positive trends in industry and generated demand for products from related activities.
The construction industry is also reported to be growing due to investment demand amid continued budget funding for the restoration of damaged critical infrastructure. Also in January, positive recovery trends were observed in agriculture and domestic trade.
Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, noted that positive trends in the main sectors of the economy form a further solid economic base for continued economic growth in the first quarter of 2024.
According to her, "the key unresolved problems are the ongoing destruction of production facilities, the difficult situation on the labor market due to high migration, and the lack of affordable credit resources.