The Ministry of Economy of Ukraine has reported that the country’s gross domestic product (GDP) grew by 4.5% year-on-year in the first quarter of 2024. In March, the growth rate increased to 4.6% compared to 3.9% in February and 3.5% in January of the same year. This growth was driven by various factors including the stable operation of the Ukrainian sea corridor, which boosted rail transport, steel production, and iron ore mining, as well as increased production capacity in the mining industry, fertiliser production, and demand for construction services. Improved business sentiment and consumer activity also contributed to this positive trend.
Despite challenges such as recent attacks on Ukraine’s energy system by Russia, preliminary data from the State Statistics Service shows that Ukraine’s real GDP grew by 5.3% in 2023 compared to the previous year, when there was a significant decline of 28.8% year-on-year. This growth can be attributed to various factors such as increased exports due to improved business sentiment and consumer activity, as well as increased investment demand and production capacity in manufacturing activities and related services facilitated by the Ukrainian sea corridor. However, some economic activities may have been negatively affected by Russia’s recent attacks on Ukraine’s energy system, causing serious damage to electricity production and power supply during peak consumption periods. Despite these challenges, Ukraine’s economy has shown resilience and positive growth trends in recent months.
