GDP Growth Rate in Ukraine

by Mila Glushchenko
Monday, October 18, 2021
GDP Growth Rate in Ukraine

GDP growth in Ukraine for 8 months amounted to 2.9%

Ukraine's GDP is growing steadily, which means that the country's economy is developing. New industries and enterprises appear, and at those that are already operating, the number of manufactured goods increases. Every year the population of Ukraine receives more and more opportunities for work, earnings and satisfaction of their needs.

Ukraine's GDP growth in January-August 2021 amounted to 2.9%, according to the Ministry of economy of Ukraine. According to them, agriculture, industry, construction and transport facilitated the growth of GDP over the specified period.

The government expects this year’s growth of the gross domestic product in Ukraine at about 4%. This was announced by the prime minister of Ukraine Denys Shmyhal.

He named the key factors that contribute to economic growth:

  • Steadily growing consumer demand. Retail trade increased by about 13% in 2021, according to government data;
  • Investment growth. In the first half of the year, the foreign direct investment amounted to $2.8 billion. This is a record amount over the past 4 years, according to the government. The government also expects investment activity to speed up in subsequent periods;
  • The rise of agriculture. The record harvest and investments of previous periods are yielding results. The growth of the agricultural sector this year amounted to 8.4%. Over the past 1.5 years, Ukrainian small and medium-sized farms have received almost $1,136 billion of cheap loans;
  • The construction sector in the first 8 months shows an increase of almost 2%. The authorities expect this to continue, including thanks to the Big construction program, as well as government mortgage-lending programs;
  • The growth of important industries, in particular mechanical engineering, metallurgy and the chemical industry. The first two sectors are growing by more than 7% this year;
  • Business expectations and sentiments. Polls by the European Business Association, the American Chamber of Commerce, and the National Bank show an optimistic business sentiment in terms of income, financial performance, salaries and reinvestment.
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