Positive dynamics of Ukraine's GDP: Latest data and forecasts

The Ministry of Economy of Ukraine published fresh data on the growth of the country's gross domestic product (GDP). In July 2024, GDP increased by 2.7% compared to the previous month. This was announced by Yulia Svyridenko, Deputy Prime Minister and Minister of Economy, through the social network Kh.

"Ukraine's economy demonstrates stability, even in the face of ongoing aggression. In July, GDP grew by 2.7%," Svyridenko emphasized. The main factors contributing to this growth were the early start of harvest in agriculture and the stable operation of the sea corridor.

The Deputy Prime Minister also noted that GDP growth in the first seven months of 2024 is estimated at 4%. This indicator confirms the positive dynamics of the economy after a difficult period, which came against the background of numerous challenges.

We will remind that in June 2024 the GDP of Ukraine increased by 1.1% compared to June last year. In the first half of this year, the total GDP growth was 4.1%. These data correspond to the updated government forecast, according to which real GDP is expected to grow at the level of 3.5% by the end of the year.

Despite the positive trends, there are also negative forecasts. Thus, the National Bank of Ukraine predicts that the growth of the economy in the current year will be only 3%, and in the next year - 4.5%. The GDP growth forecast was lowered due to the negative consequences of Russia's large-scale attacks on Ukraine's energy infrastructure.

As a result of shelling of energy facilities, Ukraine may lose 1% to 2% of its GDP in 2024. This is due to a decrease in revenues from the sale of electricity and a reduction in industrial production, especially in energy-dependent sectors.

Despite these difficulties, regulators see opportunities for positive scenarios, such as expanding export opportunities, obtaining funds from frozen Russian assets, accelerating European integration processes, and implementing a large-scale recovery program for Ukraine.