Ukraine's GDP grows by 4% in November despite border blockade

The Ukrainian economy grew by 4% in November compared to the same month last year, despite the blockade of checkpoints on the border with Ukraine by Polish hauliers.

Source: Ukraine’s Economy Ministry

Details: For January-November this year, the growth of Ukraine's GDP is estimated at 5.5% compared to the corresponding period last year. 

Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine, noted that the nearly month-long blockade of the Polish-Ukrainian border by Polish carriers in November was the main negative factor for exporters and producers dependent on imported raw materials delivered by road.

The Ukrainian maritime corridor operation played a significant role in offsetting the economic losses due to the blockade, primarily benefiting agricultural and metallurgical production, metal ore extraction companies and railway carriers.

"Our estimates show that the positive factors in November somewhat outweighed the impact on GDP, and as a result, according to preliminary operational estimates from the Ministry of Economy, there was a GDP growth of 4%," stated Svyrydenko.

In November, the inflation rate also slowed, reaching 0.5%, according to the State Statistics Service (compared to 0.8% in the previous month). Overall, the annual inflation rate continued to decelerate, decreasing from 5.3% in the previous month to 5.1% in November, even lower than in some EU countries.

"At present, the moderate dynamics of consumer price growth are consistent with the level of inflation in European countries whose economies are not experiencing the shocks of war. This is additional confirmation of the integrity and stability of the domestic economy. The current inflation trend and the factors shaping it indicate the justification of expectations for low inflation," Svyrydenko concluded.

Background:

• The calculations of the National Bank of Ukraine indicate that Ukrainian exporters lost approximately US$160 million due to the blockade of certain ground border checkpoints in the western regions.

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