The country's GDP growth for the first eight months of the year is estimated at 3.9% [±1%] compared to the same period in 2023, as reported by the Ministry of Economy.
Key Drivers of Economic Growth:
- Industry and Transport: The primary contributors to this economic growth were the industrial sector, transport, construction, and domestic trade.
- Improved Business Sentiments: Businesses have shown improved near-term performance estimates for the first time in three months, indicating a more optimistic outlook.
- Consumer Confidence: Consumer sentiment improved for the first time in two months, partly due to minimal "fan" power outages during August, providing a more stable environment for both businesses and consumers.
Government Outlook:
- GDP Growth: Yuliya Svyridenko, First Deputy Prime Minister and Minister of Economy of Ukraine, stated that the economic growth of 3.9% for the first eight months aligns with the updated government forecast, which expects a 3.5% growth in real GDP for 2024.
- Industry Stability: Stable access to electricity contributed to positive trends in the industrial sector, supporting the growth momentum.
Challenges in Agriculture:
- Agricultural Production: The agriculture sector experienced a decline in production volumes due to a smaller spring crop harvest compared to the previous year.
- Weather Impact: Weather conditions during the vegetation period and plant ripening had an adverse impact on agricultural output.
- Labor Shortages: A shortage of qualified specialists is negatively affecting business expectations and limiting economic activity in the agricultural sector.
Despite challenges in agriculture, the overall economic outlook for Ukraine remains positive, with industrial growth and improved consumer and business sentiment driving the economy forward.
