Ukraine’s economy grows by 9.1% year-on-year in September despite Russian war

Ukraine’s GDP last month grew by about 9.1 percent year-on-year, a sign that the country’s economy is on the path towards recovery despite Russia’s full-scale aggression, preliminary estimates by the economy ministry suggest.

Overall, the Ukrainian economy grew by an estimated 5.3 percent year-on-year over the first nine months of 2023.

The government attributes the growth to "positive results" in most key economic domains, including the manufacturing sector, "which suffered significant damage and destruction during the war, is gradually recovering," economy minister Yulia Svyrydenko was quoted as saying.

Services also contributed to a healthy economic growth last month, including the commercial service sector—now more digitised and agile and therefore quickly adapting to new market conditions and needs—as well as public administration and defence, which are paramount in terms of government spending.

The challenges to Ukraine’s further economic growth include damage to power generation facilities and grids; the security situation; and consequent logistical constraints, which make it difficult to export.

Overall, the Ukraine’s economy ministry believes that the 2023 GDP growth will be close to 4 to 5 percent, year-on-year.