Economy Ministry expects GDP and investment to grow in 2024
Ukraine's gross domestic product (GDP) is expected to grow by 4.6% in 2024, the press service of the Economy Ministry reported on Jan. 12.
"Investments in 2024 will grow by 29.6% compared to 2023, which will make the largest positive contribution to GDP growth among the components." the Ministry said.
“Private consumption came in second place.”
The gradual recovery of domestic production is also expected to continue, mainly to meet the needs of investment demands.
The growth in the value of exports of goods and services in 2024 is expected to be 9.0%, while imports of goods and services grew by 5.9%.
Ukraine's GDP grew by 5% in 2023 after plummeting 28.8% in 2022, according to a preliminary estimate by the Economy Ministry, First Vice PM Yulia Svyrydenko said at a webinar held on Jan. 11 by the Center for Economic Strategy.
The highest rates of recovery were in the areas of public administration and defense, a result of funding priorities, as well as in construction and restoration projects, domestic trade, and the processing industry. Favorable weather and a good harvest also enabled the agriculture sector to recover rapidly.
The Economy Ministry earlier estimated that GDP growth between January and November 2023 grew at a rate of 5.5% compared to the same period the previous year.
When approving the draft state budget for the second reading in early November, the government improved its estimate of GDP growth in 2023 from 2.8% to 5%, but downgraded it for 2024 from 5% to 4.6%.
The World Bank also adjusted its estimate of Ukraine's 2023 GDP growth from 2% to 4.8%, though it too predicted a slowdown in recovery to 3.2% in 2024.
Ukraine will require financial assistance amounting to around $42 billion in 2024, including official donor support of roughly $32 billion, the International Monetary Fund’s (IMF) Communications Director Julie Kozack said in a Jan. 11 press briefing.
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