The Ukrainian economy continues to demonstrate positive dynamics even in spite of adverse external factors. According to preliminary estimates of the Ministry of Economy, GDP growth in October 2023 compared to October last year is about 10.5% [±2%]. As a result, for January-October 2023, the growth of the economy is estimated at the level of 5.5% compared to the corresponding period last year.
“GDP growth accelerated to 10.5% in October. Positive factors that contributed to the growth of the economy include high yields in agriculture and favourable weather, which ensured high rates of harvesting. The stable situation in the energy sector and the operation of a temporary corridor for the movement of civilian vessels to the ports of Greater Odessa also contributed to the improvement. Significant destruction of infrastructure and fixed assets, preservation of significant security risks, restrictions on export logistics, slow recovery of the labour market, lack of sufficient equity capital, as well as available credit funds remain the restraining factors of economic growth. But in general, positive factors in October outweighed the balance of influence on GDP,” First Deputy Prime Minister of Ukraine – Minister of Economy of Ukraine Yuliia Svyrydenko explained.
According to her, in October, the most positive contribution to GDP was made by the services sector, in particular, the sphere of public administration and defence, the financing of which is a priority during the war. The production sphere, which, although it suffered significant losses and destruction during the war, shows steady recovery, took the second place in terms of influence on the growth of the economics.
In the industry, there is a gradual recovery of production rates in the conditions of an increase in the raw material base on the part of agricultural production, the need to replenish coal and gas reserves to pass the winter period, a stable situation in the energy sector and investment demand on the part of the budget sector.
The construction sector was positively affected by budgetary funding, which was channelled to the emergency restoration of infrastructure damaged as a result of hostilities, and capital reconstruction in previously liberated territories. The primary housing market also started show improvement thanks to the implementation of the eOselia government programme.