Ukraine’s GDP growth has slowed significantly

The growth of gross domestic product (GDP) of Ukraine in June of this year compared to June 2023 was about 1.1%, which is lower than the figures of May and April – 3.7% and 4.3%, respectively. This preliminary assessment was announced by the First Deputy Prime Minister – Minister of Economy Yulia Sviridenko on the social network X on Friday, July 12.

“The economy of Ukraine in the first half of 2024, according to preliminary estimates of the Ministry of Economy, grew by 4.1%, despite the difficulties we experienced. In June, growth was 1.1% compared to June 2023, slightly slower than at the beginning of the year,” he wrote.

Sviridenko noted that the main factor behind the slowdown in economic growth was the lack of electricity, but thanks to the high flexibility of the business, it continued to grow.

According to him, the factors contributing to this: high export of metallurgical products and iron ore, early harvest of winter crops, stable operation of the Ukrainian sea corridor, direct import of electricity from the EU by some businesses. Positive dynamics are observed in domestic trade, construction and agriculture, added the First Deputy Prime Minister.

“Negative factors for the economy include security and logistics problems, energy shortages and the complex problem of structural unemployment,” Sviridenko said.

We remind you that in May, Ukraine’s GDP growth was 3.7% compared to May 2023. As a result, in the first five months of 2024, economic growth is estimated at 4.3%.

Previously, the National Bank worsened its forecast for GDP growth to 3% in 2024, but slightly improved expectations for the inflation rate.

At the same time, the Cabinet of Ministers in the Budget Declaration for 2025-2027 predicts a slowdown in economic growth in 2025.