Ukraine’s Resilience and Promising Future: GDP Growth in the First Quarter of 2024

Ukraine’s gross domestic product (GDP) grew by 4.5% year-on-year in the first quarter of 2024, with improvements in business sentiment and consumer activity contributing to the positive trend. In March, the growth rate increased to 4.6%, driven by factors such as the stable operation of the Ukrainian sea corridor, which boosted rail transport, steel production, and iron ore mining. Additionally, increased production capacity in the mining industry and fertiliser production also contributed to this growth.

Although almost all economic activities made a positive contribution to GDP growth in March, recent attacks on Ukraine’s energy system by Russia have slowed down some economic activities and may have negative consequences for electricity production and power supply during peak consumption periods. Despite these challenges, 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. This resilience and positive growth trends are promising for Ukraine’s future economic stability.