Economy ministry: Ukraine’s GDP rises by 3.5% in Jan 2024

In January 2024, Ukraine’s gross domestic product (GDP) growth rate came to 3.5% [±1%] compared to the same period last year thanks to the growing investment demand and expanding logistics capabilities.

The relevant statement was made by the Ukrainian Economy Ministry, referring to the preliminary data, an Ukrinform correspondent reports.

“The key factors supporting the positive economic dynamics at the beginning of the year were the growing investment demand generated by the budget, as well as the accessibility of foreign markets for domestic producers due to the expansion of logistics capabilities,” Ukrainian First Deputy Prime Minister, Economy Minister Yuliia Svyrydenko noted.

In her words, the operation of the Ukrainian sea corridor allowed the country to show record-breaking export volumes since the beginning of the Russian full-scale invasion and to continue to increase economic activity, primarily by agricultural and metallurgical producers, metal ore mining companies and railway transport.

“Also, lifting the blockade of the Ukrainian-Polish border by Polish road carriers in the middle of the month had a positive effect on both exporters and manufacturers who are heavily dependent on imported raw materials,” Svyrydenko added.

According to the ministry, the main sectors of economy were showing positive dynamics in January 2024. The transport sector was supported by a rise in domestic railway services and cargo handling at sea ports. The economic activity continued to recover thanks to export-oriented enterprises, namely those operating in metallurgy, metal ore mining and agricultural processing.

With the investment demand amid maintaining budget funding for the restoration of critical infrastructure damaged by Russian attacks, the construction sector was also growing.

Additionally, last month positive recovery trends were recorded in agriculture and domestic trade.

A reminder that Ukraine’s GDP growth rate reached 5% in 2023 after its downfall to 28.8% in 2022. The National Bank of Ukraine (NBU) expects Ukraine’s economic recovery to continue. Despite the assumptions of the war persisting in 2024, Ukraine’s real GDP growth rate is expected to be 3.6%.