GDP grows by 9.1% in Sept - economy ministry

GDP grows by 9.1% in Sept - economy ministry

According to preliminary estimates of the Ministry of Economy, GDP growth in September 2023 compared to September last year was about 9.1%.

The Ministry of Economy reported this, Ukrinform saw.

The Ukrainian economy continues to recover despite Russia's war. GDP growth in September 2023 compared to September last year was about 9.1% [±2%]. As a result, in January-September 2023, growth is estimated at 5.3% compared to the same period last year.

"In September, most key economic activities showed positive results. ...I would like to note that thanks to government programs to stimulate business development, economic activity is recovering in many manufacturing sectors. In general, the manufacturing sector, which suffered significant losses and destruction during the war, is gradually recovering," Yulia Svyrydenko, First Deputy Prime Minister - Minister of Economy of Ukraine, said.

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The services sector also made a significant positive contribution to GDP in September. It combines several components. First, it is the commercial service sector, which is now more digitized and agile in its operations, and therefore quickly adapts to new market conditions and needs. Secondly, the service sector also includes public administration and defense, whose funding is a priority in times of war.

Svyrydenko noted that in September, food processing companies increased production. This happened in the context of an increase in the raw material base from agricultural production and the establishment of new supply routes. Positive dynamics were also observed in the machine building and construction materials industries, where growth was driven by reconstruction projects, including the government's eHome program. In turn, the growth in the mining industry is explained by the accumulation of coal and gas reserves for the winter.

At the same time, the repair campaign of generation facilities and grids, permanent damage to grids due to hostilities in certain regions, and unusually warm weather conditions restrained electricity production and consumption (compared to September 2022).

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The security situation, the destruction of production facilities at some enterprises (mainly in the east of the country), and logistical constraints for exporters remained the biggest constraints on economic growth in September.

As reported, the growth rate of Ukrainian GDP over the previous nine months, as well as a number of favorable factors, create quite realistic expectations that by the end of the year this figure will approach 4-5%.

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