GDP grows by 10.5% in October due to good harvest and marine corridor operation - Economy Ministry

According to preliminary estimates of the Ministry of Economy, GDP growth in October 2023 compared to October last year is about 10.5% (± 2%), as a result, for January-October 2023, economic growth is estimated at 5.5% compared to the corresponding period last year.

The Ministry of Economy has said this in a statement, Ukrainian News Agency reports.

"In October, GDP growth accelerated to 10.5%. The positive factors that contributed to the growth of the economy include high yields in agriculture and favorable weather, which provided a high rate of harvest. The stable situation in the energy sector and the work of the temporary corridor for the movement of civilian ships to the ports of Great Odesa also added positive," said First Deputy Prime Minister - Minister of Economy Yulia Svyrydenko.

According to her, significant destruction of infrastructure and fixed assets, the preservation of significant security risks, restrictions on export logistics, a slow recovery of the labor market, the lack of sufficient equity, as well as available credit funds remain the restraining factors for the growth of the economy.

Svyrydenko said that in October the most positive contribution to GDP was the service sector, in particular, the field of public administration and defense, the financing of which is a priority during the war.

In second place in terms of the impact on the growth of the economy was the industrial sector, which, although it suffered significant losses and destruction during the war, shows a steady recovery.

The Ministry of Economy notes that in industry there is a gradual recovery in the rate of production in the context of an increase in the raw materials base from agricultural production, the need to replenish coal and gas reserves for the winter period, the stable situation in the energy sector and investment demand from the public sector.

Budget financing, which was aimed at emergency restoration of infrastructure damaged by hostilities, and capital reconstruction in previously liberated territories, had a positive impact on the construction sector.

Also, the primary housing market began to feel better thanks to the implementation of the eOselia (eHome) government program.

As Ukrainian News Agency earlier reported, according to the State Statistics Service, in April-June 2023, real gross domestic product (GDP), according to operational data, increased by 19.5% compared to the same period in 2022.

The state budget for 2023 was developed based on the macroeconomic forecast, which implies real GDP growth of 3.2%.

In October, the National Bank improved its inflation forecast for the end of 2023 from 10.6% to 5.8% and GDP growth from 2.9% to 4.9%.

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