GDP in July increases by 2.7% - Economy Ministry

In July 2024, Ukraine's GDP grew by 2.7% [±1%] compared to July last year.

This is stated in the message of the Ministry of Economy, the Ukrainian News agency reports.

As a result, for the seven months of this year, GDP growth is estimated at the level of 4.0% [±1%] compared to the same period last year.

The dynamics of economic growth for the first seven months of 2024 stays at the level of 4.0%, currently corresponds to the updated government forecast.

The growth of real GDP in 2024 is expected at the level of 3.5%.

At the same time, the shortage of qualified specialists negatively affects the expectations of businesses and restrains their economic activity.

It is noted that in July the positive dynamics of domestic trade was maintained thanks to the gradual growth of consumer demand.

The construction sector also recovered, where the main drivers of growth were budgetary financing of the restoration of damaged critical infrastructure, capital reconstruction, as well as road surface repairs in emergency areas.

During July, there was significant growth in agriculture.

The main factor was the increase in the volume of harvesting of winter crops.

Due to the weather factor, it was possible to start the collection campaign earlier.

Livestock breeding maintains positive dynamics due to stable demand on the domestic market and state support for producers.

At the same time, the increase in costs for the use of reserve power has a negative effect on producers of poultry products.

In industry, enterprises maintain production activity thanks to the direct import of electricity and the existing experience in responding to energy challenges.

But the increase in the costs of providing alternative sources of electricity supply restrains the growth of production.

Currently, the key unresolved issues remain high security risks, as well as the consequences of the destruction of the energy infrastructure.

Energy restoration will require time and resources.

According to forecasts, this may restrain the pace of recovery of industrial activity.

Also, logistical problems and a difficult situation on the labor market remain negative factors for the economy.

As the Ukrainian News agency earlier reported, in January-March 2024, real gross domestic product (GDP), according to operational data, increased by 6.5% compared to the same period in 2023.

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