Ukraine's Econ Ministry puts GDP growth at 10.5% in Oct, 5.5% in Jan-Oct

MOSCOW. Nov 27 (Interfax) - Ukraine's real GDP growth accelerated to 10.5% year-on-year in October from 9.1% in September, Ukrainian media reported, citing a preliminary estimate from the Economy Ministry.

"The Ukrainian economy continues to demonstrate a positive dynamic, despite unfavourable external factors [...] As a result, economic growth for January-October 2023 is estimated at 5.5% compared to the same period of last year," the ministry said. GDP grew by 5.3% in the first nine months of 2023.

Growth was driven in part by high crop yields and favourable weather that set the stage for rapid clearing of the harvest; the stable situation in the energy sector; and the operation of the temporary marine corridor for ship traffic to Greater Odessa ports, First Deputy Prime Minister and Economy Minister Yulia Sviridenko said.

Growth was constrained by significant destruction of infrastructure and fixed assets, ongoing considerable security risks, restrictions on export logistics, slow recovery of the labor market, and the lack of sufficient internal capital and accessible loan financing, she said.

In October, the service sector and the real sector of the economy, which is seeing a steady recovery, made the biggest contribution to GDP, Sviridenko said. Budget funding for urgent restoration of damaged infrastructure gave a push to the construction sector and the resource base of agricultural production is growing, she said.

At the beginning of November, Ukraine's government raised its GDP growth forecast for this year to 5% from 2.8%, and the International Monetary Fund raised its forecast to 4.5% from 1-3%. The European Union expects Ukraine's economy to expand by 4.8% in 2023.