The National Bank explains why in 2023, real GDP grew by 5.3%.

As reported by the NBU, public sector consumption increased by 9% over the year, and its share in GDP in 2023 reached almost 42% compared to about 18% in 2021. Private consumption grew by 6.1% thanks to the recovery of real income growth, including wages in the economy’s private sector.

Investment activity increased by 52.9%. The rapid growth in investment was primarily caused by significant budget expenditures, although the private sector also showed signs of revitalized investent activity spurred by improved financial results. Businesses invested in the development of logistics capacity, the restoration of energy supplies, and obtaining autonomous energy supply most often.

The favorable dynamics observed in indicators for most commercial activities were determined not only by the low base of comparison in 2022 but also by the successful adaptation by businesses to wartime conditions and state support.

The most significant increase in gross value added occurred in the following sectors: construction, public administration and defense, health care, agriculture, trade, transport, IT, and the processing industry.