Ukrainian GDP increased by 4.5% year-on-year during the first nine months of 2024, according to new data from Ukraine’s Ministry of Economy. This growth continues the trend established in 2023, which saw Ukrainian GDP rise by 5.3% following a 28.8% crash during the first year of Russia’s full-scale invasion.
Commenting on Ukraine’s strong economic performance during the January-September 2024 period, Ukrainian Minister of Economy Yulia Svyrydenko identified the revival of the country’s industrial sector and the continued operation of a Black Sea trade corridor established in August 2023 as key factors. On the eve of the invasion, Russia began blockading Ukraine’s Black Sea ports in a bid to cut the country off from vital international trade routes. However, Ukraine’s successes in the Battle of the Black Sea made it possible to break this blockade in 2023 and resume maritime trade.
Additional factors driving the growth of the Ukrainian economy include construction and the rapidly expanding defense sector. Ukraine has dramatically increased domestic defense production since 2022, with a particular emphasis on defense tech innovation including the manufacture of drones. More than 200 Ukrainian companies are currently producing drones, with a growing number of international companies also entering the Ukrainian market.