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Ukraine's economy grew at annual pace of about 3.5% in January, Economy Ministry says

Ukrainian Economy Minister Yulia Svyrydenko (center left) meets with visiting mission from IMF this week. (Economy Ministry photo)

Ukraine's economy grew at an annual pace of 3.5% in January, spurred by improvements in logistics and government spending, Economy Minister Yulia Svyrydenko estimated.

An ease to shipping constraints in the Black Sea, expanded rail capacity and increased maritime cargo handling capabilities, plus an end to a border blockade by Polish farmers in the middle of the month, helped boost exports and generate economic growth in January.

"The Ukrainian economy continues to adapt and acquire characteristics of the wartime economy," Svyrydenko said. "The ongoing destruction of production facilities, the difficult situation on the labor market due to high migration, and the lack of available credit resources remain the key unresolved problems."

The estimate, which the Economy Ministry said could be 1 percentage point too low or high, is in line with the National Bank of Ukraine's estimate of 3.6% growth in gross domestic product for the full year of 2024.

Last year, Ukraine's economy grew 5.7%, the central bank has estimated, following the collapse of 29.1% in 2022 that accompanied the full-scale Russian invasion on Feb 24 of that year.

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