The Ministry of Economy estimates GDP growth in January at the level of 3.5% compared to January 2023 and explains it by the expansion of logistics capabilities and the growth of investment demand.
This is stated in the message of the Ministry of Economy, Ukrainian News Agency reports.
"In the first month of 2024, the Ukrainian economy demonstrates a continuation of the trend of restorative growth. According to preliminary data, the Ministry of Economy estimates GDP growth in January at the level of 3.5% [±1%] compared to January 2023," the message reads.
According to First Vice Prime Minister - Minister of Economy Yuliya Svyrydenko, the key factors supporting positive economic dynamics at the beginning of the year were the growing investment demand generated by the budget, as well as the availability of foreign markets for domestic manufacturers due to the expansion of logistics capabilities.
In particular, she noted that in January, the work of the Ukrainian maritime corridor made it possible to reach record volumes of exports since the beginning of the large-scale invasion of russia and to continue to increase economic activity, primarily by producers of agricultural and metallurgical products, enterprises for the extraction of metal ores and the activity of railway transport.
She also added that the lifting of the blocking of the Polish-Ukrainian border by Polish road carriers since mid-January had a positive effect on both the activities of exporters and the activities of manufacturers who are significantly dependent on imported raw materials.
The Ministry of Economy also notes that the construction industry is also growing due to investment demand against the background of maintaining budget funding and restoring damaged critical infrastructure.
"Positive trends in the main sectors of the economy form a further reliable economic base for continued economic growth in the first quarter of 2024. The Ukrainian economy continues to adapt and acquire the characteristics of a wartime economy. The key unresolved problems remain the ongoing destruction of production capacities, a difficult situation on the labor market due to high migration, as well as the lack of available credit resources," Svyrydenko summarized.
As Ukrainian News Agency earlier reported, in January, the National Bank kept the GDP growth forecast at 3.6% and improved the inflation forecast by 1.2 percentage points to 8.6% by the results of 2024.
In December 2023, the Cabinet of Ministers approved the main forecast macro indicators of the economic and social development of Ukraine for 2024-2026, which predicts that in 2024 GDP growth will be 4.6%.
When forming the state budget for 2024, the real GDP forecast was reduced from 5% to 4.6%.
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