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Ukraine's GDP grows by 3.5% in January compared to January last year

This was driven by expanding logistics capabilities and rising investment demand. 

Ukraine's GDP grows by 3.5% in January compared to January last year
Yuliya Svyrydenko
Photo: Max Trebukhov

In the first month of 2024, the Ukrainian economy is continuing its recovery trend. According to preliminary data, the Ministry of Economy estimates GDP growth in January at 3.5% [±1%] compared to January 2023.

"The key factors supporting the positive economic dynamics at the beginning of the year were the growing investment demand generated by the budget, as well as the accessibility of foreign markets for domestic producers due to the expansion of logistics capabilities," said Minister of Economy Yuliya Svyrydenko.

She noted that the operation of the Ukrainian Sea Corridor has allowed Ukraine to achieve record export volumes since the beginning of Russia's large-scale invasion and to continue to increase economic activity, primarily by agricultural and metallurgical producers, metal ore mining companies and railway transport.

According to Svyrydenko, the lifting of the blockade of the Polish-Ukrainian border by Polish protesters in the middle of the month had a positive impact on both exporters and manufacturers that are heavily dependent on imported raw materials.

According to preliminary estimates, the main sectors of the economy showed positive dynamics in January. The transport sector was supported by an increase in domestic rail traffic and cargo handling at seaports. The continued recovery in economic activity driven by export-oriented industries, namely metallurgy, metal ore mining and agro-processing, and energy, not only led to positive trends in industry but also generated demand for products from related businesses.

In turn, the construction industry is also growing due to investment demand amid continued budget funding for the restoration of damaged critical infrastructure. In January, the agricultural and domestic trade sectors also showed positive recovery trends.

"Positive trends in the main sectors of the economy form a further solid economic base for continued economic growth in the first quarter of 2024. The Ukrainian economy continues to adapt and acquire the characteristics of a wartime economy. The key unresolved issues remain the ongoing destruction of production facilities, the difficult situation on the labour market due to high migration, and the lack of available credit resources," summarised Yuliya Svyrydenko. 

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