Ukraine’s GDP grew by 3.5% y/y in January – Ministry of Economy

In January 2024, Ukraine’s GDP, according to preliminary data, increased by 3.5% [±1%] compared to January 2023. This is stated in the report of the Ministry of Economy.

According to the ministry, the positive economic dynamics at the beginning of the year were undermined by growing investment demand, as well as the expansion of logistics opportunities for domestic producers in foreign markets.

According to First Vice Prime Minister and Minister of Economy Yulia Svyrydenko, the work of the Ukrainian sea corridor has allowed to reach record export volumes since the beginning of the large-scale invasion of Russia and to continue to increase economic activity. This primarily concerns producers of agricultural and metallurgical products, metal ore mining companies, and railway transportation.

In addition, the lifting of the border blockade by Polish road carriers in mid-January had a positive impact on both exporters and manufacturers that are heavily dependent on imported raw materials.

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. Positive trends in industry were driven by a recovery in economic activity in export-oriented industries, as well as in the energy sector. In addition, this created demand for products from related industries.

«Positive trends in the main sectors of the economy form a further reliable economic base for continued economic growth in the first quarter of 2024. The Ukrainian economy continues to adapt and acquire characteristics of the wartime economy,» the Minister of Economy noted.

She added that the key unresolved problems remain the ongoing destruction of production capacity, the difficult situation in the labor market, and the lack of affordable credit.

As GMK Center reported earlier, the euro area’s GDP in October-December 2023 remained unchanged compared to July-September last year. Compared to the fourth quarter of 2022, the euro area economy grew by 0.1%.