Ukraine’s economy shows resilience, with GDP up to 2.7% in July 2024 – Svyrydenko

The relevant statement was made by Ukrainian Deputy Prime Minister, Economy Minister Yuliia Svyrydenko on the social media platform X, an Ukrinform correspondent reports.

“Ukraine’s economy continues to show resilience. According to the Ukrainian Economy Ministry, GDP grew by 2.7% in July. […] In total, for January-July of this year, we have growth at the level of 4.0%,” Svyrydenko wrote.

In her words, Ukraine’s GDP growth was driven by the early start of the harvesting campaign and the stable operation of the maritime corridor.

“In July, the economy operated under conditions of rolling blackouts due to power shortages. This hampered economic activity of both businesses, amid rising costs, and consumers of goods and services. Nevertheless, the economy managed to offset the negative impact of the electricity shortage. This was facilitated by the high level of business adaptability to difficult conditions and experience in responding to such challenges. Some businesses have secured stable access to electricity through direct imports,” Svyrydenko noted, as cited by the Ukrainian Economy Ministry.

According to her, the economic growth rate of 4.0% in the first seven months of 2024 is currently in line with the updated government forecast. Real GDP growth is expected to reach 3.5% in 2024.

At the same time, the shortage of skilled workers has a negative impact on business expectations and restrains their economic activity.

Svyrydenko mentioned that the positive dynamics of domestic trade continued in July 2024, driven by a gradual increase in the consumer demand.

The construction sector was also recovering, with the main growth drivers being public funding for the restoration of damaged critical infrastructure, major reconstruction, and road repairs in emergency areas.

In the industrial sector, companies maintain production activity thanks to direct electricity imports and their experience in responding to energy challenges. However, the rising costs of securing alternative sources of electricity are holding back the production growth rate.

A reminder that, in July 2024, despite an electricity deficit in Ukraine’s energy system and smaller harvests compared to the previous year, the National Bank of Ukraine (NBU) slightly upgraded the country’s economic growth forecast for 2024 to 3.7%.