Ukrainian GDP growth estimated at 4.5% in Q1

MOSCOW. April 27 (Interfax) - Ukraine's GDP grew by 4.5% (+/- 1%) in real terms in the first quarter of 2024, Ukrainian media reported citing Economy Ministry materials.

Economic growth accelerated to 4.6% (+/- 1%) in March from 3.9% (+/- 1%) in February and 3.5% (+/- 1%) in January.

The trend of recovery growth continued in March, supported by the stable operation of the Ukrainian marine corridor, which stimulated activity in railway transport, metallurgy and metal ore mining; the expansion of production capacity in the mining industry; the intensification of mineral fertilizer production; and stronger demand for construction materials amid an improvement in business sentiment and expectations for consumer activity, the ministry said.

Almost all aggregated types of economic activity made a positive contribution to GDP in March, the ministry said. The marine corridor assured exports of agricultural, mining and metal products, while investment demand generated by the budget and the growth of capacity in the mining industry generated a positive contribution by manufacturing sectors.

However, growth of electricity generation slowed significantly due to major damage to energy infrastructure. A significant amount of time and resources will be needed to restore it.

The National Bank of Ukraine lowered its GDP forecast for 2024 to 3% from 3.6% on April 25. The government forecast economic growth of 4.6% for this year.