According to the results of 2024, Ukraine’s GDP is expected to grow by 4%, of which 0.64%, or more than UAH 88 billion, is the result of the implementation of the Made in Ukraine policy. This was reported by First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko in her column for Interfax-Ukraine.

“According to the Ministry of Economy's calculations, the Made in Ukraine policy, aimed at developing Ukrainian producers, contributed 0.64% (over UAH 88 billion) to the overall 4% growth this year. The manufacturing industry has become one of the leaders in tax payments. According to the results of three quarters of 2024, it accounted for 16.7% of the total collection to the consolidated budget of Ukraine. And the growth in tax payments for the first 9 months was 19.6% compared to the same period last year,” said Yuliia Svyrydenko.

This year, the Government has focused on three key areas to increase the share of the manufacturing industry in GDP: development of production, attraction of investments in the real sector, and promotion of non-resource exports.

The localisation policy in public procurement helps to create demand for Ukrainian goods from the state and communities. From 1 January 2025, the local content requirement will increase to 25%. The School Bus programme has enabled communities to purchase 1,000 buses in two years, providing jobs for employees of Ukrainian bus plants and more than 200 contractors.

For businesses, there are compensation programmes of 15% and 25% for the purchase of Ukrainian machinery. Almost 150 manufacturers have already taken advantage of them. The preferential mortgage programme eOselia (eHousing) is driving demand for construction materials. This year, it was refocused on the primary property market.

“Production of building materials increased by 37.1% in the first half of 2024, and the share of mortgages in the primary market doubled. The programme also contributes to the de-shadowing of the economy.

In the first half of the year, developers paid UAH 1.6 billion in taxes, which is 2.2 times more than in the same period last year,” the First Deputy Prime Minister and Minister of Economy said.

The National Cashback programme is stimulating demand for Ukrainian goods. According to the Retail Association of Ukraine, sales of certain products increased by 9.5% in the first months of its implementation.

The programme to encourage investment in the Ukrainian economy is also helping to attract investment in industrial parks. This year, 15 industrial parks received around UAH 1 billion of support for infrastructure development.

This year, the Government also adjusted the Affordable Loans at 5-7-9 programme to focus on investment and the development of the processing industry. Over the year, the share of such loans doubled to 46%. In the frontline regions, the volume of investment loans increased from UAH 3 billion to UAH 25 billion. Loans can also now be used to purchase energy equipment.

Businesses are actively using grants for processing companies. Over the course of the programme, more than 1,000 grants worth UAH 5 billion have been issued.

A programme to support projects with significant investments was launched in Ukraine for the first time. Two agreements totalling more than EUR 100 million have been signed. Three more projects are under evaluation, and several new ones are being prepared for submission. In total, 6 projects were submitted to the Ministry of Economy for evaluation in 2024.

War risk insurance instruments are also available, implemented by MIGA, DFC, EBRD, foreign ECAs, and the Export Credit Agency of Ukraine.

According to Yuliia Svyrydenko, in 2024, support for non-resource exports was bolstered by renewing free trade agreements with Canada and the UK, extending autonomous trade measures with the EU, and securing an exemption from U.S. duties on Ukrainian steel. Additionally, instruments from the Ukrainian ECA supported non-commodity exports by UAH 7.22 billion over 11 months. This is almost UAH 2 billion more than last year.

In 2025, the Government will continue to support the Made in Ukraine policy programmes by ensuring their full funding to stimulate the production of value-added goods and economic development.