Ukraine’s GDP grew by 3.7% y/y in May – Ministry of Economy

In May 2024, Ukraine’s GDP grew by 3.7% compared to May 2023. This estimate was published by the Ministry of Economy.

In January-May, GDP growth is estimated at 4.3% compared to the same period last year.

According to Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, last month’s economic growth was hampered by the increased intensity of hostilities, shelling of infrastructure facilities and electricity shortages.

«However, business coped with these challenges due to its high level of adaptability. GDP growth continued thanks to high exports in the context of stable operation of the Ukrainian sea corridor, as well as high demand for construction services, which is supported by financing for infrastructure restoration,» she said.

Positive trends in May were observed in the transportation sector, industry, construction, agriculture and domestic trade. Among the negative factors, Svyrydenko mentioned a significant shortage of qualified personnel and Russia’s systemic attempts to destroy Ukraine’s energy infrastructure.

According to the First Deputy Prime Minister, in May, industrial enterprises continued to recover their economic activity, both due to export-oriented production and increased demand for investment products in the machine-building industry and construction materials. At the same time, the metallurgical industry, according to the Ministry of Economy, has reached its highest production levels since the beginning of the war. Sunflower oil production also increased. All this has created demand for products of related activities.

According to the preliminary data of the State Statistics Service, Ukraine’s real GDP grew by 5.3% in 2023 compared to the previous year, when the decline was 28.8% y/y.

According to the annual GMK Center study, the contribution of the mining and metals industry to Ukraine’s GDP last year amounted to 5.7%. The industry will support the national economy in 2024 thanks to the efficient operation of the sea corridor. In 2023, the share of steel industry in exports amounted to 14.6%.