The economy of Ukraine managed to neutralize the negative impact of the lack of electricity due to several factors.
Ukraine’s gross domestic product (GDP) growth in July this year compared to July last year was about 2.7%, which is better than the June figure of 1.1%, but worse than the results in May and April – 3.7% and 4.3 % respectively. The Ministry of Economy announced this on Thursday, September 5.
“As a result, for January-July 2024, growth is estimated at 4.0% [±1%]which generally correspond to predicted trends,” the message said.
The department recalled that in July, the Ukrainian economy operated under very strict rolling blackout schedules due to power shortages, which complicated the economic activity of both businesses amid rising costs and consumers of goods and services.
But the economy was able to neutralize the negative impact of the power shortage thanks to:
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a high level of adaptability to difficult operating conditions and experience in meeting such challenges, in particular, the ability of individual producers to ensure stable access to electricity through direct imports;
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early start of harvest of winter crops due to weather factors;
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stable operation of the Ukrainian sea corridor;
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significant budget funding for the construction of engineering structures.
As you know, the National Bank worsened its forecast for GDP growth to 3% in 2024, but slightly improved expectations for the inflation rate.
In turn, the Ukrainian government significantly worsened the forecast for economic growth in 2025 – 2.7%. At the same time, growth of 6.8% was previously expected.
Source: korrespondent
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