Economic growth slows in Ukraine due to power outages – Ministry of Economy

Ukraine's GDP grew by 1.1% (±1%) in June compared to June last year, while for the first half of the year, growth is estimated at 4.1% (±1%) compared to the same period last year, according to the press service of the Ministry of Economy.

The main factor slowing economic growth was power outages, the ministry explains.

"During June, the economy functioned under difficult conditions of power outages, which weakened the economic activity of both businesses and consumers. However, thanks to a high level of adaptability to difficult conditions and experience in responding to such challenges, the Ukrainian economy continued to grow," commented Minister of Economy Yulia Svyrydenko.

Among the factors contributing to economic growth, the minister mentioned high export rates of metallurgical products, early start of winter crop harvesting, and stable operation of the sea corridor.

In June, positive dynamics were maintained in domestic trade, construction, and animal husbandry.

Key unresolved issues remain high security risks and the consequences of energy infrastructure destruction. Energy restoration requires time and resources, which is expected to restrain the pace of production activity. Logistical problems and a difficult labor market situation also remain negative factors.

The dynamics of economic growth in the first half of 2024 correspond to the updated government forecast, according to which real GDP growth by the end of 2024 is expected to be 3.5%.

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