Ukraine's GDP growth accelerated despite power outages: Economy Ministry names reason
Date: 2024-09-05 Author: Michail Kovalenko Categories: ECONOMY
This was due to the early harvest in agriculture thanks to the weather.
"As a result, for January-July 2024, growth is estimated at 4.0% [±1%], which is generally in line with projected trends," the Economy Ministry said in a statement.
As noted by the ministry, in July 2024, the economy operated in a mode of extremely strict rolling blackouts due to its shortage, which complicates the economic activity of both enterprises amid rising costs and consumers of goods and services.
However, the economy managed to offset the negative impact of the electricity deficit due to:
- a high level of adaptability to difficult operating conditions and experience in responding to such challenges, in particular, the ability of individual producers to ensure stable access to electricity through direct imports;
- early start of winter crop harvesting due to weather factors;
- stable operation of the Ukrainian Sea Corridor;
- significant budget financing for the construction of engineering structures.
Recall that the Ukrainian government has significantly worsened the forecast for Ukrainian economic growth in 2025 - 2.7%. Previously, growth was expected to be 6.8%.
In addition, the Ministry of Economy has worsened expectations for Ukraine's gross domestic product growth in 2024 from 4.6% to 3.5%.
The plan for the size of budget expenditures on security and defense indicates that the government expects the war to continue in 2025 and end in 2026.
"As a result, for January-July 2024, growth is estimated at 4.0% [±1%], which is generally in line with projected trends," the Economy Ministry said in a statement.
As noted by the ministry, in July 2024, the economy operated in a mode of extremely strict rolling blackouts due to its shortage, which complicates the economic activity of both enterprises amid rising costs and consumers of goods and services.
However, the economy managed to offset the negative impact of the electricity deficit due to:
- a high level of adaptability to difficult operating conditions and experience in responding to such challenges, in particular, the ability of individual producers to ensure stable access to electricity through direct imports;
- early start of winter crop harvesting due to weather factors;
- stable operation of the Ukrainian Sea Corridor;
- significant budget financing for the construction of engineering structures.
Recall that the Ukrainian government has significantly worsened the forecast for Ukrainian economic growth in 2025 - 2.7%. Previously, growth was expected to be 6.8%.
In addition, the Ministry of Economy has worsened expectations for Ukraine's gross domestic product growth in 2024 from 4.6% to 3.5%.
The plan for the size of budget expenditures on security and defense indicates that the government expects the war to continue in 2025 and end in 2026.
