Ukraine’s GDP grew by 4.1% y/y in the first half of the year – Ministry of Economy

In the first half of 2024, Ukraine’s GDP grew by 4.1% compared to the same period in 2023, the Ministry of Economy reports.

In June this year, Ukraine’s economy grew by 1.1% compared to June last year.

«In June, the economy operated in difficult conditions of power outages, which weakened the economic activity of both enterprises 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 are the high rates of exports of mining and metallurgical products and the early start of winter crops harvesting,» said Yulia Svyrydenko, First Vice Prime Minister of Economy of Ukraine.

The First Vice Prime Minister also mentioned the stable operation of the Ukrainian sea corridor, direct electricity imports from the EU by some companies, and earlier harvesting as positive factors. Positive dynamics are observed in domestic trade, construction, and agriculture.

According to her, the dynamics of economic growth in the first half of the year at 4.1% is currently in line with the updated government forecast, according to which real GDP growth is expected to reach 3.5% in 2024.

Currently, the Ministry of Economy notes that high security risks and the consequences of the destruction of energy infrastructure remain the key unresolved issues. Restoring the energy sector will require time and resources, which is expected to slow down the pace of recovery in production activity. Logistical problems and a difficult labor market situation also remain negative factors for the economy.

As GMK Center reported earlier, in May this year, Ukraine’s GDP grew by 3.7% compared to May 2023. In January-May, economic growth was estimated at 4.3% compared to the same period last year.