Great Construction project to increase Ukraine's GDP by 2.2% in 5 years

According to experts of the Kyiv School of Economics (KSE), the implementation of the presidential Great Construction project will increase Ukraine's GDP by 2.2% in the next five years.

The results of the study were published during the All-Ukrainian Forum "Ukraine 30. Infrastructure", Ukrinform reports.

The experts mentioned the following positive long-term effects of the Great Construction project: increasing public capital in the transport sector, the courier and tourism sectors, reducing travel time and minimizing fuel and repair costs, expanding business opportunities, creating prospects of emergence of new enterprises.

According to KSE analysts, an increase in demand for construction materials and labor will boost GDP by 2.2%. In addition, it will lead to a cumulative increase in GDP over the next five years by 4.4%.

"Our study shows that investment in Ukrainian roads is a strategically correct decision. It should be understood that the economy resources are in excess during the crisis. Infrastructure development allows reviving business activity for a while, but these short-term effects are complemented by strong long-term effects of increasing productivity and intensity of highway service. Significant effects will be more noticeable in 5-10 years," said Yuri Sholomytsky, head of the KSE Macroeconomic Modeling Center.

On February 22, President Volodymyr Zelensky announced during the All-Ukrainian Forum "Ukraine 30. Infrastructure" that 4,500 km of roads of national significance and 2,000 km of local roads would be built and restored in Ukraine in 2021.

As a reminder, the Great Construction national project was initiated by President Volodymyr Zelensky in autumn 2019. The purpose of the project is to build the necessary infrastructure facilities throughout Ukraine. On March 1, 2020, construction works on more than 300 sites began simultaneously. The plans for 2020 included the construction and renovation of more than 100 schools, 100 kindergartens, 100 stadiums and 200 new hospital admission departments. The construction of 4,000 km of roads was also announced.

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