Ukraine's gross domestic product (GDP) growth in August 2024 compared to August of the previous year was 3.5% [±1%], which is better than the June and July figures of 1.1% and 2.7%, respectively, but lower than the April and May figures of 4.3% and 3.7%, according to preliminary assessments released by the Ministry of Economy on Wednesday.

According to the Ministry's estimates, the overall economic growth for the first eight months of 2024 was 3.9% [±1%], compared to 4% for the first seven months and 4.1% for the first half of the year, confirming the annual forecast of 3.5%.

"The primary contributions to economic growth came from industry and positive dynamics in transport, construction, and domestic trade. Additionally, in August, businesses improved their assessments of activity for the near future for the first time in the past three months," said First Deputy Prime Minister, Minister of Economy Yulia Svyrydenko in the ministry's release.

She added that for the first time in the last two months, consumer sentiment improved, attributed to minimal "rolling" electricity outages throughout the month. The first deputy prime minister pointed out that many companies have established direct imports of electricity.

Svyrydenko also highlighted the work of the Ukrainian maritime corridor and the high investment demand in machine engineering and construction materials.

The revival of the industrial sector positively impacted the transport sector – there was an increase in domestic rail transportation and cargo handling in seaports. In construction, there was an increase in construction and assembly work. The main drivers of the industry were the restoration of damaged critical infrastructure, capital reconstruction, and repair of road surfaces in emergency areas, as noted in the release. Domestic trade saw growth in turnover due to increased consumer demand.

At the same time, the Ministry of Economy noted that the shortage of qualified specialists negatively affects business expectations and hinders their economic activity.

The decline in agricultural production volumes led to smaller harvests of spring crops compared to last year, influenced by weather conditions during the growing and ripening periods. However, positive dynamics remain in livestock due to stable demand in the domestic market and state support for producers.

As reported, the IMF's updated September forecast expects Ukraine's economy to grow by 3% in 2024, while next year's forecast ranges from 2.5% to 3.5%.

The National Bank of Ukraine improved its GDP growth forecast for this year from 3% to 3.7% at the end of July, expecting it to slow down in the third quarter to 3.1% and in the fourth to 2.3%. For next year, the NBU downgraded its forecast for Ukrainian economic growth from 5.3% to 4.1%.