In August 2024, the Ukrainian economy grew by 3.5% [±1%] compared to August last year. For the first eight months of the year, GDP growth is estimated at 3.9% [±1%] year-on-year for the first eight months of this year. These figures were announced by the Ministry of Economy.

"The main contribution to economic growth was made by industry and positive dynamics in transport, construction and domestic trade. In addition, in August for the first time in the last three months, businesses improved their assessments of their performance in the near term. Moreover, consumer sentiment improved for the first time in two months.

This is due to minimal ‘rolling’ power outages during the month,' said Yuliia Svyrydenko, First Deputy Prime Minister, Minister of Economy of Ukraine. According to her, the dynamics of economic growth in the first eight months of 2024 at 3.9%, is currently in line with the updated government forecast. Real GDP growth in 2024 is expected to reach 3.5%.

At the same time, the shortage of skilled workers is having a negative impact on business expectations and restrains their economic activity.

Yuliia Svyrydenko noted that in August, positive trends in the industry were formed due to the stable access of enterprises to electricity. Many companies have introduced direct electricity imports. She also mentioned the work of the Ukrainian sea corridor and high investment demand for engineering products and construction materials.

The industrial recovery had a positive impact on the transport sector - the volume of domestic railway traffic and cargo handling in seaports increased. In the construction sector, the volume of construction and installation works rose. The main driver of the industry was the restoration of damaged critical infrastructure, major reconstruction and repair of road surfaces in emergency areas.

Domestic trade saw an increase in turnover due to increased consumer demand.

The decline in agricultural production was driven by lower harvest volumes of spring crops compared to the previous year. This was due to weather conditions during the vegetation period and plant maturation. However, positive dynamics continued in livestock production due to stable domestic demand and government support for producers.