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Ukraine's GDP grows by 9% since last September

by Elsa Court and The Kyiv Independent news desk October 25, 2023 1:18 PM 2 min read
A worker at the Citius-S factory, which relocated from Melitopol in Zaporizhzhia Oblast 1,200 kilometers (750 miles) west to Lviv Oblast at the start of the war. (Pete Kiehart/Bloomberg via Getty Images)
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Ukraine's GDP grew by 9.1% year-on-year, according to the Economy Ministry's preliminary estimates on Oct. 25.

While the war is ongoing, the economic growth is proof of "the high ability of businesses to adapt to new challenges, as well as assistance from the state and international partners," Economy Minister Yulia Svyrydenko said.

The ministry specifically pointed to government programs that stimulate business development as one of the driving forces behind the growth.

Growth in the service sector, which "is more digitized and agile," also had an impact, the ministry reported.  

Moreover, the industrial sector, "which suffered significant losses and destruction during the war, is gradually being restored."

Growth is also being recorded in other metrics. In the month of September, 35,587 new small and medium sized businesses were registered in Ukraine, a three-year-high, Opendatabot reported on Oct. 11.

After a lull last year following Russia’s full-scale invasion, the number of these businesses, referred to as "individual entrepreneur" registrations or by their Ukrainian acronym FOP, has steadily increased in 2023.

Despite "individual entrepreneur" registrations being reserved for individuals who are set to open small or medium-sized businesses, many companies register their employees as entrepreneurs providing them services for tax optimization purposes.

Data also shows that Ukraine’s key sectors grew between January and September this year, Svyrydenko reported on Oct. 9, citing the Ministry's preliminary estimates.

Construction topped the list, growing by 18.4% in the first half of 2023. Production rates are recovering in the industrial sector, boosting machine building by 12.9% and furniture production and machinery repair by 11.6%.

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