In the first quarter of 2024, Ukraine’s Ministry of Economy reported that the country’s gross domestic product (GDP) grew by 4.5% year-on-year. This growth was driven by various factors, including the stable operation of the Ukrainian sea corridor, which boosted rail transport, steel production, and iron ore mining, as well as increased production capacity in the mining industry, fertiliser production, and demand for construction services. Improved business sentiment and consumer activity also contributed to this positive trend.
In March, the growth rate increased to 4.6% compared to 3.9% in February and 3.5% in January of the same year. Almost all economic activities in Ukraine made a positive contribution to GDP growth in March. Exports of agricultural products and iron and steel were facilitated by the Ukrainian sea corridor, while investment demand and increased production capacity in the mining industry boosted manufacturing activities and related services. However, in the third week of March, Russia launched significant attacks on Ukraine’s energy system, causing serious damage. This has slowed down the recovery of some economic activities and may have negative consequences for electricity production and power supply during peak consumption periods.
Preliminary data from the State Statistics Service shows that Ukraine’s real GDP grew by 5.3% in 2023 compared to the previous year, when there was a significant decline of 28.8% year-on-year. Despite challenges such as the recent attacks on the energy system, Ukraine’s economy has shown resilience and positive growth trends in recent months.
