By KYIV. Sept 15 (Interfax-Ukraine) – The gross domestic product (GDP) of Ukraine, after declining in the first quarter of 2023 by 10.5% compared to the first quarter of 2022, began to grow in the second and third quarters, as indicated in the explanatory note to the government’s draft state budget for 2024.
“According to the Ministry of Economy, growth is 3% for eight months,” the document notes.
According to it, “certain types of economic activities” managed to quickly adapt to the consequences of the destruction of Kakhovka hydroelectric power station dam.
“Better than expected results of economic activity are due to the rapid adaptation of enterprises to new operating conditions together with the restoration of domestic demand, which was the traditional driver of economic growth in Ukraine in previous years,” the explanatory note states.
First Deputy Prime Minister – Minister of Economy Yulia Svyrydenko last week announced an increase in the forecast for GDP growth in 2023 to 4%, but the explanatory note still talks about economic growth this year by 2.8% with inflation of 14.7%, although in August it decreased to 8.6%.
According to the explanatory note, the Ministry of Economy as of mid-June of this year predicted GDP growth next year by 5% with inflation decreasing at the end of the year to 10.8%.
At the end of July, the National Bank of Ukraine raised its GDP growth forecast for Ukraine in 2023 from 2% to 2.9%, but lowered it for 2024 from 4.3% to 3.5%. In addition, the NBU improved its inflation estimate this year from 14.8% to 10.6%, and next year to 8.5%.
