The Ukrainian economy is recovering despite the war and massive missile attacks by the Russian Federation. According to preliminary estimates, GDP growth in April 2024 was about 4.3% [±1%] compared to April last year. As a result, in January-April 2024, growth is estimated at 4.4% [±1%] compared to the same period last year, the Ministry of Economy reports.
"In April 2024, the trend of economic recovery continued, supported by record exports of goods, increased demand for construction services in the context of budget funding for infrastructure reconstruction, continued improvement in business sentiment and revival of consumer activity. The stable operation of the sea corridor has stimulated the rail transport, steel production and metal ore mining sectors," explained Yuliya Svyrydenko, First Vice Prime Minister and Minister of Economy.
She noted that positive trends were observed in the transport sector, industry, construction, agriculture, and domestic trade. Overall, the economy continues to adapt and acquire the characteristics of a wartime economy.
However, according to the Minister, high security risks, further damage to energy facilities, and a significant shortage of skilled workers continued to put a negative pressure on GDP.
Yuliya Svyrydenko also said that in April, industrial enterprises continued to recover their economic activity, both due to export-oriented production and demand for investment products such as machine building and construction materials. All of this created demand for products from related businesses.
At the same time, according to Svyrydenko, after the latest attacks on Ukraine's power grid and significant damage and destruction of TPPs and HPPs, some generation facilities were temporarily lost. Problems with power generation could have a potentially negative impact on industry, especially on the largest electricity consumers, which, due to the technological nature of their production processes, find it almost impossible to switch to alternative sources of electricity supply.
In early May, the Minister of Economy announced that Ukraine had reached pre-war export levels. In April, Ukraine exported a record volume of goods.