KYIV, (Reuters) – The gross domestic product of Ukraine increased by 3. 9% year-on-year in the first eight months of the year, the economy ministry said on Wednesday.
The ministry also stated that as a result of this GDP had increased by 3. 5% year-on-year in August.
Minister of Economy, Yulia Svyrydenko, first deputy prime minister also argued that improved access to electricity in the past one month positively influenced the rate of the economic growth in the short-term business and consumer confidence.
She said the transport and building sectors as well as the retail trade contributed to the economic expansion from January to August this year.
She noted that while transport and the building industry together with retail had aided the economic growth from January to August.
Ultimately, Ukraine’s economy has been severely impacted by the Russian invasion with the GDP in 2022 shrinking more than by a quarter.
Amid foreign financial investment totaling billions, and Ukrainian companies’ evolving and overcoming themselves, the economy in 2023 began to grow, by 5%. 3%.
However, this year many businesses are suffering from energy crises and government is expecting that the GDP rate of the country will decrease to 3. 5% in 2024.
Since March, Russia has targeted Ukraine’s power sector and damaged roughly fifty percent of the obtainable generation capacity; Hence, long blackouts across the country.
They have to use commercial electricity which is much more costly than self-generated electricity and make huge investments on the development of new capabilities for generating electrical energy.
Russia’s invasion of Ukraine’s economy has significantly reduced and based on data provided the GDP has reduced by approximately 29% in 2022.
Indeed, due to billions in foreign financial assistance and the ability and endurance of Ukrainian businessmen, the economy was back on the growth track in 2023 and went up by 5. 3%.
But in the current year business people are experiencing an acute energy crunch and the government anticipates the growth rate to come down to 3. 5% in 2024.
Since March, Russia has targeted Ukraine’s power infrastructure with more frequency, which in its absence has damaged around fifty percent of the available generation capacity and widespread blackouts in Ukraine.
Companies are limited to require high-cost electricity from other countries and spend a lot of money on acquiring new power generation solutions.
Russian forces capture more territory of Ukraine in eastern Ukraine
Russian soldiers entered the Ukrainian city of Ukraine in the eastern Donetsk region on Tuesday, according to Russia’s RIA news agency.
It said Russian troops recently placed their flag at a mine ventilation shaft located in the city outskirts. (unverified)
Blinken informed about the plan of Ukraine to bring pressure on Russia to cease the war
During his visit to Kyiv last week, US Secretary of State Antony Blinken was informed about some features of the Ukrainian plan to persuade Russia to stop the war, Miller, the spokesperson of the US state department said yesterday.
This is the first time Volodymyr Zelenskyy has mentioned his “victory plan”, although he said it already in the beginning of the month stating he wanted to share this plan with Joe Biden.
Mr Miller said: I believe it would be most appropriate for President Zelenskyy, whose idea this is in the first place, to discuss the plan’s specifics.
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