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Ukraine's GDP up by 3.9% year-on-year in Jan-Aug, economy ministry says

Published 09/18/2024, 03:08 AM
Updated 09/18/2024, 03:10 AM
© Reuters. FILE PHOTO: A Ukrainian serviceman walks by a shop window with mannequins, amid Russia's attack on Ukraine, in central Kyiv, Ukraine October 26, 2023. REUTERS/Gleb Garanich/File photo

KYIV (Reuters) - Ukraine's gross domestic product grew by 3.9% year-on-year in the first eight months of the year, the economy ministry said on Wednesday.

The ministry also said in a statement that GDP had grown by 3.5% year-on-year in August.

Yulia Svyrydenko, first deputy prime minister and economy minister, said that better access to electricity over the last month had helped drive economic growth and boosted business and consumer confidence in the near term.

She said the transport and building sectors as well as retail had helped drive the economic expansion from January to August.

Ukraine's economy has been devastated by Russia's invasion, with GDP falling by about 29% in 2022.

Thanks to billions in foreign financial aid and Ukrainian businesses' adaptability and resilience, the economy returned to growth in 2023, rising by 5.3%.

But this year businesses are facing severe energy shortages and the government expects GDP growth to slow to 3.5% in 2024.

© Reuters. FILE PHOTO: A Ukrainian serviceman walks by a shop window with mannequins, amid Russia's attack on Ukraine, in central Kyiv, Ukraine October 26, 2023. REUTERS/Gleb Garanich/File photo

Russia has intensified its bombardment of Ukraine's power sector since March, knocking out about half of the available generation capacity and causing long blackouts across the country.

Businesses have to rely on more expensive imported electricity and invest heavily in developing new energy-generating capabilities.

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