Ukraine's GDP grew by 4.1% in the first half of the year - Ministry of Economy

In June 2024, Ukraine's GDP increased by 1.1% compared to June of the previous year. In general, for the first six months of the year, GDP growth is estimated at 4.1% compared to the same period last year. This is reported in by the Ministry of Economy, UNN writes.

According to the Ministry of Economy, the main reason for the slowdown in economic growth was power outages due to electricity shortages. However, despite these factors, the economic recovery process continues.

In June, the economy operated under difficult conditions of power outages, which weakened economic activity of both businesses and consumers. However, due to the high level of adaptability to difficult conditions and experience in responding to such challenges, the Ukrainian economy continued to grow. Among the factors that contributed to this were the high rates of exports of mining and metallurgical products and the early start of the winter crop harvest.Positive factors that influenced economic growth include the stable operation of the Ukrainian sea corridor and the ability of some enterprises to ensure stable access to electricity through direct imports

According to Svyrydenko, economic growth in the first half of 2024 amounted to 4.1%, which is in line with the government's updated forecast, which envisages real GDP growth of 3.5% for the whole year. She also noted that the shortage of skilled workers has a negative impact on business expectations.

In June, the domestic trade, construction, and agriculture sectors showed positive dynamics.

In the construction industry, government funding for the restoration of critical infrastructure, capital construction, and road repairs were important growth drivers. In agriculture, a significant contribution to growth was made by weather conditions that allowed for an earlier start to the harvest and increased production.

Stable demand and government support stimulated positive trends in livestock production, although egg production took a hit due to higher backup power costs.

However, Svyrydenko emphasized that security risks and damage to the energy infrastructure remain unresolved issues that could slow the recovery of production activity. Logistical challenges and the difficult situation on the labor market also continue to affect the country's economic situation.

Recall

Experts believe that the shadow economy in Ukraine has always been large, with some estimates as high as 60% of GDP. A small share of it is occupied, in particular, by "gray" grain exports.