Ukraine's real GDP growth slows by 8% in July, says IER report

Ukraine's real GDP growth in July slowed from 15% to 8%, compared to the same period last year, the Institute for Economic Research and Policy Consulting (IER) stated in its monthly economic monitoring report on Aug 17.

“The slowed growth is primarily due to the presence of a higher statistical base, as the decline of Ukraine’s GDP slowed significantly in the third quarter of 2022. GDP is now 25% lower compared to July 2021,” IER said.

Read also: Ukrainian economy may grow over 5% in 2023 despite war — ICU

However, real gross value added (GVA) in the processing industry increased by over 20%, thanks to the recovery of all sectors from a low base. However, the mining industry recorded negligible growth. Most of Ukraine’s mining infrastructure and industry is located in the east of the country – which has borne the brunt of the full-scale Russian invasion.

Read also: Ukraine’s central bank improves economic growth forecast for 2023

Meanwhile, the agricultural sector grew by almost 5%, primarily due to the lower statistical base of July 2022. The grain harvest in Ukraine was high and amounted to almost the same as last year.

"The growth rate of real GVA in transport slowed to 9% year-over-year, while the GVA in trade continued to grow rapidly (about 27% year-over-year)," the report states.

According to the IER, GDP growth was 20-21% in the second quarter: up to 22% in April; 20.9% in May; and 15.3% in June.

We’re bringing the voice of Ukraine to the world. Support us with a one-time donation, or become a Patron!

Read the original article on The New Voice of Ukraine