Ukraine's economy supported by construction, transport and manufacturing

Ukraine's economy grew by 4.2% in the first ten months of 2024 compared to the same period in 2023, thanks to the construction, transport and manufacturing sectors, the country's Economy Ministry announced, according to kyivindependent.com.

The 4.2% growth confirms previous government forecasts.

The cited source recalls that the Russian invasion caused a major impact on the Ukrainian economy, which suffered a massive drop in GDP, by 29.1% in 2022.

Recovery programs aimed at rebuilding damaged and destroyed housing have stimulated the construction industry, fueling economic growth. The transport and manufacturing sectors were among the factors, mainly due to the restoration of the Black Sea trade corridor and the increase in defense production, First Deputy Economy Minister Oleksii Sobolev said in a statement.

Ukraine's GDP grew by 1.3% between October 2023 and the same month this year. According to the ministry, this figure was negatively affected by lower-than-usual agricultural production at this time of year due to the early harvest.

"By October, farmers had already finished harvesting some crops," the ministry said.

Ukraine's economy stabilized faster than expected in 2023, thanks to several government programs, as well as international support, growing by 5.3%. In July 2024, the Ministry of Economy reported a 4.1% increase for the first six months, compared to the same period in 2023.

Last week, Kyiv Independent wrote that Ukraine's 2025 budget provides $1.3 billion for arms production, almost $84.4 million more than in 2024, as announced by the Minister of Strategic Industries, Herman Smetanin. Another $500 million will be allocated to a program of affordable loans for defense companies. The program, created this year, allows defense manufacturers to take out loans with an interest rate of 5% per annum, and the state budget covers the rest of the interest, according to the minister.

The Kiev government approved the draft budget for 2025 in September. It provides for revenues of $48.2 billion and expenditures of $86.8 billion.

The bill passed its first reading in Parliament on October 31, and the final vote is expected by December 1.