Ukraine's economic growth accelerated in late summer: what caused it
Date: 2024-09-18 Author: Alexei Fomin Categories: ECONOMY
"The main contribution to economic growth was made by industry and positive dynamics in transport, construction and domestic trade. In addition, in August, for the first time in the last three months, businesses improved their assessments of their activities for the near future. Also, for the first time in the last two months, consumer sentiment improved. This is due to minimal "rolling" power outages during the month," said First Deputy Prime Minister - Minister of Economy of Ukraine Yulia Svyrydenko.
According to her, the dynamics of economic growth for the first eight months of 2024 at 3.9% now corresponds to the updated government forecast. Real GDP growth by the end of 2024 is expected to be 3.5%.
Sviridenko noted that positive trends in industry in August were formed due to stable access of enterprises to electricity.
The decline in production volumes in agriculture resulted in smaller volumes of spring crops compared to last year. This was influenced by weather conditions during the growing season and ripening of plants. At the same time, the shortage of qualified specialists negatively affects business expectations and restrains their economic activity, the press service of the ministry reported.
Recall that according to the State Statistics Service, in the first quarter of 2024, the Ukrainian economy grew by 6.5%.
The Ukrainian economy slowed down in the second quarter of 2024 due to power outages. In May 2024, Ukraine's GDP grew by 3.7%, in June by 1.6%, in July by 2.7%.
Therefore, the Ministry of Economy worsened its expectations for the growth of Ukraine's gross domestic product in 2024 from 4.6% to 3.5%.
In addition, the Ukrainian government has significantly worsened its forecast for Ukraine's economic growth in 2025 to 2.7%. Previously, growth of 6.8% was expected.
According to her, the dynamics of economic growth for the first eight months of 2024 at 3.9% now corresponds to the updated government forecast. Real GDP growth by the end of 2024 is expected to be 3.5%.
Sviridenko noted that positive trends in industry in August were formed due to stable access of enterprises to electricity.
The decline in production volumes in agriculture resulted in smaller volumes of spring crops compared to last year. This was influenced by weather conditions during the growing season and ripening of plants. At the same time, the shortage of qualified specialists negatively affects business expectations and restrains their economic activity, the press service of the ministry reported.
Minimal growth in summer due to electricity shortages
Recall that according to the State Statistics Service, in the first quarter of 2024, the Ukrainian economy grew by 6.5%.
The Ukrainian economy slowed down in the second quarter of 2024 due to power outages. In May 2024, Ukraine's GDP grew by 3.7%, in June by 1.6%, in July by 2.7%.
Therefore, the Ministry of Economy worsened its expectations for the growth of Ukraine's gross domestic product in 2024 from 4.6% to 3.5%.
In addition, the Ukrainian government has significantly worsened its forecast for Ukraine's economic growth in 2025 to 2.7%. Previously, growth of 6.8% was expected.
