Ukraine’s GDP is Recovering Faster Than Expected: Growth in the First Quarter Was 2.4%

According to the results of the 1st quarter of the year, the annual reduction of Ukraine’s GDP amounted to 10.5%, but compared to the 4th quarter of last year, real GDP grew by 2.4%.

This was reported by the press service of the Ministry of Economy with reference to the data of the State Statistics Service.

The department notes that the contraction of the economy by 10.5% is much better than the ministry’s earlier preliminary estimates (-14.1%).

“These data indicate that the Ukrainian economy is adapting and recovering faster than previously predicted. It continues to work and overcome the challenges of war. And this is confirmed by the growth of real GDP seasonally adjusted in the 1st quarter of 2023 compared to the 4th quarter of 2022 by 2.4%,” First Deputy Prime Minister – Minister of Economy Yulia Sviridenko noted.

Government measures to stabilize the situation in the energy sector and solve logistical problems, including with access to certain seaports under the grain agreement, provide support for businesses and the population.

Also, the improvement of economic growth is facilitated by the implementation of programs for the restoration and support of enterprises that facilitate access to financial resources, in particular, the programs “Affordable loans 5-7-9%” and “єRobota”. As well as financing the restoration of destroyed infrastructure, residential and social facilities.

“All this becomes possible, among other things, thanks to the international assistance provided by the partner countries, which in combination feeds restrained optimism among economic entities,” the minister emphasized.

At the same time, military aggression continues to create new shocks and trials for the Ukrainian people: 

• delay in the work of the grain corridor;
• restrictive measures on the part of neighboring countries for the import and transit of Ukrainian agricultural products;
• consequences of the destruction of the Kakhovskaya hydroelectric power station.

As the Ministry of Economy added, positive dynamics of GDP is also observed in the II quarter.

Source : Економічна Правда