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Russian massive strikes slow down Ukraine's GDP growth - Ministry of Economy

Russian massive strikes slow down Ukraine's GDP growth - Ministry of Economy Photo: Ukraine's economy grew by 4.3% in April 2024 (Vitalii Nosach, RBC-Ukraine)
Author: Liliana Oleniak

The Ukraine's Ministry of Economy estimates the growth of Ukraine's gross domestic product (GDP) in April 2024 at 4.3%, which is slightly less than in March (4.6%).

As a result, in January-April 2024, growth is estimated at 4.4% [±1%] compared to the corresponding period last year, the report says.

"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 restoration, continued improvement in business sentiment, and revival of consumer activity," says Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine.

According to her, the stable operation of the sea corridor has stimulated rail transportation, steel production, and metal ore mining.

"At the same time, high security risks, another damage to energy facilities, and a significant shortage of qualified personnel continued to put negative pressure on GDP," Svyrydenko adds.

After the latest Russian attacks on Ukraine's power grid and significant damage and destruction of TPPs and hydroelectric power plants, some generation facilities were temporarily lost.

"Problems with power generation can have a potentially negative impact on the operation of industry, especially the largest electricity consumers, which, due to the technological features of production processes, find it almost impossible to switch to alternative sources of electricity supply," the statement says.

In April, the National Bank of Ukraine downgraded its economic growth forecast to 3.0% in 2024 due to the consequences of Russia's large-scale attacks on Ukraine's energy infrastructure.

International financial organizations forecast Ukraine's economic growth in 2024 at around 3%. Such forecasts are provided by the IMF, the World Bank, the EBRD, and the European Commission.