GDP grows by 10.5% in Oct - economy ministry
According to Ukrinform, the Ministry of Economy reports.
"In October, GDP growth accelerated to 10.5%. The positive factors that contributed to the economic growth include high agricultural yields and favorable weather, which ensured high harvest rates. The stable situation in the energy sector and the operation of a temporary corridor for the movement of civilian vessels to the ports of Odesa region also added to the positive outlook," First Deputy Prime Minister of Ukraine - Minister of Economy Yulia Svyrydenko explained.
In her words, significant destruction of infrastructure and fixed assets, persistence of significant security risks, restrictions on export logistics, slow recovery of the labor market, lack of sufficient equity capital, and lack of available credit remain the constraints on economic growth. Overall, however, positive factors outweighed the balance of impact on GDP in October.
In October, the most positive contribution to GDP was made by the service sector, in particular, public administration and defense, which are a priority during the war. The second largest contributor to economic growth was the manufacturing sector, which, although it suffered significant damage and destruction during the war, is showing a steady recovery.
The industrial sector is gradually recovering from the decline in production rates amid an increase in the raw material base from agricultural production, the need to replenish coal and gas reserves to get through the winter, a stable situation in the energy sector, and investment demand from the public sector.
The construction sector was positively impacted by budgetary funding for emergency restoration of infrastructure damaged by the hostilities and major reconstruction in the previously liberated territories. The primary housing market also improved thanks to the government's eOselia (lit. eHome) program.
As reported, the growth rate of Ukrainian GDP over the previous nine months, as well as a number of favorable factors, create quite realistic expectations that by the end of the year this figure will approach 4-5%.
