Ukraine's GDP up by 3.5% in August - economy ministry

In August 2024, Ukraine’s gross domestic product increased by 3.5% on year.

This was reported by the Ministry of Economy, according to Ukrinform.

"In August 2024, the Ukrainian economy grew by 3.5% [±1%] against August last year. Over the eight months of this year, GDP growth is estimated at 3.9% [±1%] year-on-year," the statement reads.

According to Yuliia Svyrydenko, First Deputy Prime Minister, Minister of Economy of Ukraine, the key factors of economic growth included industrial development and positive trends in transport, construction, and domestic trade. Also, business expectations and consumer sentiment improved in August for the first time in months, to which minimal power outages observed throughout the month contributed.

"The economy growth dynamics seen over the first eight months of 2024 at the level of 3.9% currently corresponds to the updated government outlook. In 2024, the growth of real GDP is expected at 3.5%," Svyrydenko noted.

The lack of highly qualified personnel remains a challenge for business, which restrains economic growth and affects outlooks by entrepreneurs, the report adds.

Svyrydenko also noted positive trends in industry thanks to stable access to electricity, operations of the Ukrainian Maritime Corridor, and high investment demand for engineering products and construction materials.

In the transport sector, the volume of domestic rail transport and cargo handling in seaports increased. The construction sector saw an increase in the volume of construction and assembly works, while a rise in turnover was observed in domestic trade.

The Ministry of Economy noted that, despite the drop in agricultural production due to weather conditions, positive dynamics remain in place in animal husbandry thanks to stable demand on the domestic market and government support for producers.

As Ukrinform reported earlier, despite the challenges associated with scheduled power outages in July, the economy showed stability – Ukraine's gross domestic product grew by 2.7% year-on-year. Enterprises successfully adapted to challenges, in particular thanks to the direct import of electricity, which allowed for minimizing the negative impact of the energy deficit on economic activity.