Ukraine's GDP grows by 3.7% in May – Economy Ministry

"The increased intensity of combat clashes, shelling of infrastructure facilities and power outages unfortunately hampered economic growth in May this year. However, businesses managed to cope with these challenges due to their high level of adaptability. GDP growth continued thanks to high exports in the context of stable operation of the Ukrainian maritime corridor, as well as high demand for construction services, which is supported by financing for infrastructure restoration," said Yulia Svyrydenko, First Vice Prime Minister of Ukraine and Minister of Economy.

According to her, positive trends were recorded in the transport sector, industry, construction, agriculture, and domestic trade.

In May, industrial enterprises continued to restore economic activity. This was due to both export-oriented production and increased demand for investment products in the machine-building and construction materials sectors, according to the ministry.

The metallurgical industry reached its highest production levels since the beginning of the war. Sunflower oil production was also on the rise. All this created demand for products of related activities.

As reported, the NBU projects that economic growth will slow to 3% in 2024, including due to the damage to energy infrastructure and an expected electricity shortage (about 5%, according to the NBU). In 2025 and 2026, GDP growth is expected to accelerate due to a more rapid return to normal economic conditions, to 5.3% and 4.5%, respectively.