Economy ministry expects Ukraine’s GDP to rise by 4% at year end

The relevant statement was made by the Ukrainian Economy Ministry, an Ukrinform correspondent reports.

“In the overall growth of 4% this year, 0.64% (i.e. over UAH 88 billion) has  been provided by the Made in Ukraine picy aimed at develing Ukrainian producers, in accordance with the Economy Ministry’s estimates. The processing industry has been listed among the leaders in tax payments. Over three quarters of 2024, it has accounted for 16.7% of the total considated budget revenues. In the first nine months of 2024, the amount of tax payments was 19.6% higher compared to the same period last year,” Ukrainian Deputy Prime Minister, Economy Minister Yuliia Svyrydenko noted.

In her words, this year the Ukrainian government has focused on three key areas to increase the share of processing industry in the country’s GDP, namely the develment of production, the attraction of investments in the real sector, and the promotion of non-resource exports.

The localization picy in public procurement helps to create demand for Ukrainian goods. From January 1, 2025, the local content requirement will increase to 25%. The Scho Bus programme allowed communities to purchase 1,000 buses in two years, providing jobs for those working at Ukrainian bus plants and over 200 contractors.

“In the first half of 2024, the production of construction materials increased by 37.1%, and the share of mortgage loans on the primary market doubled. The programme also contributes to the de-shadowing of the economy. In the first half of 2024, real estate develers paid UAH 1.6 billion in taxes, which is 2.2 times higher compared to the same period last year,” Svyrydenko explained.

Meanwhile, with the government programme ‘Affordable Loans at 5-7-9%’, the amount of investment loans in frontline regions increased from UAH 3 billion to UAH 25 billion.

For the first time, Ukraine has launched a programme to support projects with significant investments. Two agreements were signed, totaling more than EUR 100 million. Another three projects are under evaluation, and several new projects are yet to be submitted. Overall, six projects were submitted for evaluation to the Economy Ministry in 2024.

Additionally, Ukraine offers war risk insurance instruments, which are implemented by the MIGA, DFC, EBRD, foreign export credit agencies, and Ukraine’s ECA.

According to Svyrydenko, the Ukrainian government will continue to support the Made in Ukraine picy programmes in 2025, ensuring their full funding to promote the production of value-added goods and economic develment.

A reminder that Ukraine’s state budget for 2025 includes at least UAH 36 billion for the implementation of the Made in Ukraine picy programmes.