Ukrainian economy

UAH 45 billion is earmarked for support programs in the state budget this year

The implementation of the Made in Ukraine policy will provide at least 1% additional GDP growth in 2024. This was stated by First Vice Prime Minister and Minister of Economy Yulia Svyrydenko during the presentation of this economic platform, according to the Ministry.

«To win the war and build a strong economy, we must focus on our own production. To this end, the government is introducing a new state policy Made in Ukraine, which includes several key areas for the development of Ukrainian business. It is about stimulating demand for Ukrainian goods from the state and the private sector, promoting investment in the real sector: cheap money, connecting to networks and developing industrial infrastructure, compensating investments through taxes and developing non-resource exports,» she noted.

Svyrydenko added that UAH 45 billion is allocated in the state budget for support programs this year.

According to the First Deputy Prime Minister, up to 40% of the money spent on the purchase of Ukrainian goods is returned through taxes paid back to the security and defense forces.

«The government will give priority access to public procurement to Ukrainian producers by expanding the localization policy to new categories of goods, including defense procurement. It will also expand the program of compensation for the purchase of agricultural machinery to other types of Ukrainian machinery, expand the affordable mortgage program eHouse, which will stimulate demand for Ukrainian construction materials,» said Svyrydenko.

Announcing the launch of the Made in Ukraine platform, President Volodymyr Zelenskyy said that work is underway with partners to insure all investments in Ukraine against military risks, as well as to preserve and expand domestic export opportunities. He also said that the Ukrainian government has prepared proposals to resolve problematic issues at the Polish border, which have already been submitted to the European Commission and presented to Polish representatives.

As GMK Center reported earlier, last year the Ukrainian steel industry refocused on meeting the needs of the domestic market. In 2023, only half of steel products were exported, which is significantly less than its pre-war share (about 80%). Last year, the industry also became even more integrated into the EU, as more than 80% of steel exports went to the EU (in 2022, the same figure was 60%). Despite the war, the Ukrainian steel industry has survived and continues to operate, and there is reason to believe that in 2024 the industry will retain its role and will be the basis for the recovery of Ukraine’s infrastructure and economy.