In June 2024, Ukraine's GDP grew by 1.1% [±1%] compared to June of the previous year. Overall, for the first half of the year, GDP growth is estimated at 4.1% [±1%] compared to the same period last year. These figures were released by the Ministry of Economy.
It is noted that the main factor slowing down economic growth was power outages due to energy shortages. Despite these challenges, economic recovery continues.
"Among the factors contributing to economic growth are high export rates from the mining and metallurgical complex and the early start of winter crop harvesting. Positive factors also include the stable operation of the Ukrainian sea corridor and the ability of certain enterprises to ensure stable access to electricity through direct imports," emphasized First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko.
According to her, the economic growth dynamics in the first half of 2024 at 4.1% align with the updated government forecast, which anticipates real GDP growth of 3.5% by the end of 2024.
However, an analysis shows that the shortage of skilled labor negatively impacts business expectations.
Overall, as highlighted by Svyrydenko, positive dynamics were maintained in internal trade in June. The construction sector also grew, driven by budget financing for the restoration of critically damaged infrastructure, capital reconstruction, and repairs to road surfaces in accident-prone areas.
Currently, key unresolved issues include high security risks and the consequences of energy infrastructure destruction. Energy restoration will require time and resources, which could potentially restrain the pace of production recovery.
Logistical problems and a complex labor market situation continue to pose negative factors for the economy.
