The GDP of Ukraine in the 1st quarter grew by 1.2% q/q – State Statistics Service

Ukraine’s seasonally adjusted real gross domestic product (GDP) increased by 1.2% in January-March 2024 compared to the previous quarter. This is evidenced by preliminary data from the State Statistics Service.

Compared to the first quarter of 2023, Ukraine’s economy grew by 6.5% in January-March this year. The GDP growth rate accelerated for the first time since the second quarter of 2023. Then the indicator increased by 19.2% y/y, in the third quarter – by 9.6% y/y, and in the fourth quarter – by 4.7% y/y.

The Ministry of Economy estimated Ukraine’s GDP growth in the first quarter of this year at 4.5% (+/-1%) compared to the same period in 2023. In March, growth accelerated to 4.6% y/y (+/-1%) from 3.9% (+/-1%) in February and 3.5% (+/-1%) in January 2024.

In 2023, according to the State Statistics Service, Ukraine’s real GDP grew by 5.3% compared to the previous year, when the decline was 28.8% y/y. The National Bank of Ukraine estimated the country’s economic growth in 2023 at 5.7% y/y. At the same time, the NBU expects Ukraine’s GDP to grow by 3.6% in 2024 and by 5.8% y/y – in 2025.

Iron and steel production in Ukraine in 2023 was 71% lower than in 2021. Nevertheless, the steel sector remains the backbone of the Ukrainian economy, contributing 5.7% to GDP in 2023, including supply chains. Before the war, the metals sector contributed 10.3% to Ukraine’s GDP.

The steel sector of Ukraine accounted for every third dollar of merchandise exports before the war. In 2023, the share of metallurgy in exports was 14.6%.