Kyiv: Gross domestic product (GDP) in war-torn Ukraine rose 1.5% in January, the country's Economy Ministry said Monday. "The drivers of growth remain the construction industry, the processing industry, as well as domestic trade," said Oleksiy Sobolev, Ukraine's first deputy economy minister.
According to Anadolu Agency, Sobolev emphasized that a drop in exports caused the growth rate to fall significantly, but this effect was partially mitigated by aggressive budget funding. Road rebuilding, housing development, and the restoration of vital infrastructure all played significant roles in bolstering the economy.
Sobolev noted that production in the machine construction industry rose as a result of the continued high demand for defense equipment, coinciding with the Russia-Ukraine war approaching its third anniversary. However, a decline in animal product output was observed in agriculture due to rising production costs.
The transportation and mining industries also experienced a downturn. Mines on the contact line in the eastern Donetsk region, which is at least partially under Russian control, have ceased operations. The ministry reported that massive missile assaults caused interruptions in the electrical supply.
Ukraine's GDP grew 1.7% in December, with GDP growth of 2.7% expected for 2025.