Ukraine’s economy grew by 4.3%

According to the preliminary estimate of the Ministry of Economy of Ukraine, the growth of the gross domestic product (GDP) in April 2024 compared to April last year was about 4.3%. The press service of the Ministry of Economy reported this on Wednesday, May 22.

Positive trends were observed in the transport sector, industry, construction, agriculture and domestic trade. In general, the economy continues to adapt and takes on the characteristics of a wartime economy.

“The trend of renewed economic growth continues in April 2024, supported by record volumes of export of goods, increased demand for construction services in the context of budget funding for infrastructure restoration, continued improvement in business sentiment and revival of consumer activity,” the report said.

Thus, in April, industrial enterprises continued to restore economic activity both through export-oriented production and demand for investment products – mechanical engineering (military-industrial complex) and construction materials. All this creates demand for the products of related activities.

At the same time, high security risks, additional damage to energy facilities, as well as a significant lack of qualified personnel continue to put negative pressure on GDP.

It is indicated that after subsequent attacks on the energy system of Ukraine and significant damage and destruction of thermal power plants and hydroelectric power stations, part of the generation facilities was temporarily lost.

“Problems in electricity generation can have a potentially negative impact on the work of the industry, especially the largest consumers of electricity, for whom, due to the technological features of the production processes, it is almost impossible to re -orient to alternative sources of power supplies,” predicts the department.

The National Bank of Ukraine (NBU) has raised its forecast for real gross domestic product (GDP) growth in 2024 and improved inflation expectations.