Ukraine's GDP growth slows to 1.1% in June, 4.1% in H1 - Econ Ministry

MOSCOW. July 12 (Interfax) - Ukraine's year-on-year GDP growth slowed to 1.1% in June from 3.7% in May and 4.3% in April.

"The Ukrainian economy grew 4.1% in the first half of 2024, despite the challenges we have faced, according to the Economy Ministry's preliminary estimates. In June, growth was at 1.1% compared to June 2023, a bit slower than at the beginning of the year," Ukrainian media reported, quoting First Deputy Prime Minister Yulia Sviridenko, who is also Economy Minister.

She said a shortage of electricity was one of the main factors slowing economic growth. "Negative factors for the economy include security and logistical issues, electricity shortages and the complex issue of structural unemployment," Sviridenko said.

However, she said that the economy continued to grow thanks to the adaptability of business, including high exports of metallurgical products and iron ore, early harvest of winter crops, steady operation of the Ukrainian maritime corridor and direct electricity imports from the EU by some businesses. There are positive trends in domestic trade, construction and agriculture, she said.

The National Bank of Ukraine in April worsened the GDP growth forecast for this year from 3.6% to 3% following 5.3% growth last year.

The International Monetary Fund worsened its outlook for GDP growth this year from 3%-4% to 2.5%-3.5% in its fourth review of the Extended Fund Facility for the country at the end of at the end of June.