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Despite widespread blackouts, GDP growth accelerates in Ukraine.

The Ukrainian government predicts the improvement of key macroeconomic indicators and economic growth, whether the war ends in 2024 or drags on longer.

Despite widespread blackouts, GDP growth accelerates in Ukraine.

In July, Ukraine’s GDP growth accelerated to 2.7% after rising 1.6% in June in response to early harvesting. For January-July, growth is estimated at 4% [±1%], which generally corresponds with the forecasted trends, noted the Ministry of Economy.

It is reported that in July, the economy was operating under rigorous blackout schedules due to a shortage of electricity, making it difficult for businesses to operate against rising costs. At the same time, it was possible to compensate for the negative impact of the electricity shortage thanks to:

  1. adaptation to difficult working conditions, in particular, the ability of individual producers to ensure stable access to electricity through direct imports
  2. early harvesting of winter crops due to the weather
  3. the Ukrainian Maritime Corridor’s stable opertion
  4. budgetary financing for the construction of engineering structures

The ministry predicts economic growth for 2024 will be at least 3.5%.

 

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