The Ministry of Economy of Ukraine has announced 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 positive trend was driven by several 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. Additionally, improved business sentiment and consumer activity contributed to this positive trend.
In March, almost all economic activities in Ukraine made a positive contribution to GDP growth. Exports of agricultural products and iron and steel were facilitated by the Ukrainian sea corridor, while investment demand and increased production capacity in the mining industry boosted manufacturing activities and related services.
However, in the third week of March, Russia launched significant attacks on Ukraine’s energy system, causing serious damage. This has slowed down the recovery of some economic activities and may have negative consequences for electricity production and power supply during peak consumption periods.
Despite these challenges, 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 resilience despite ongoing challenges is a testament to Ukraine’s economy’s strength and potential for growth in recent months.
