Ukraine's GDP grows by 4.1% in first half of 2024 despite negative factors

Ukraine's Ministry of Economy reports.

According to the ministry, in June 2024, Ukraine's GDP grew by 1.1% [±1%] compared to June last year. The main factor behind the slowdown is the power outage due to electricity shortages.

"In June, the economy operated under difficult conditions of power outages, which weakened economic activity of both businesses 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," said Yulia Svyrydenko, Ukraine's First Vice Prime Minister and Minister of Economy.

According to her, the factors that contributed to the economic growth also include high rates of exports of mining and metallurgical products and the early start of winter crops harvesting.

Other positive factors include the stable operation of the Ukrainian Sea Corridor and the ability of individual enterprises to secure stable access to electricity through direct imports.

Svyrydenko added that the dynamics of economic growth in the first half of 2024 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, high security risks and the consequences of the destruction of energy infrastructure remain the key unresolved issues. Restoration of the energy sector will require time and resources, which, according to forecasts, may slow down the pace of recovery of production activity. Logistical problems and the difficult situation on the labor market also remain negative factors for the economy," the ministry said.

• In May this year, Ukraine's GDP increased by 3.7% compared to the same period in 2023.