Russian strikes on Ukraine’s power generating facilities have reduced the country’s gross domestic product (GDP) growth rate but failed to prevent it from increasing.
The relevant statement was made by Deputy Head of the German Economic Team, Berlin Economics Low Carbon Ukraine Project Leader Robert Kirchner in a commentary to Ukrinform.
“There is a negative impact, but it cannot stop Ukraine’s growth. Last year, we expected the GDP growth rate at 4.6%, but it was 3.6%, i.e. 1 percentage point less. This mainly resulted from attacks on the energy system,” Kirchner told.
In his opinion, Russian continuous attacks will not prevent Ukraine’s economic growth. As estimated by the German Economic Team’s experts, who cooperate with Ukrainian colleagues from the Institute for Economic Research and Policy Consulting (Kyiv), Ukraine’s GDP growth rate is expected to be 3.6% at the end of 2024 and 3.4% in 2025.
“The level is practically the same,” Kirchner noted.
In his words, obviously, it will be “not only dark but cold” this winter season, but Ukraine had already gone through blackouts in winter. However, the economist admits that nuclear power plants provided a significant share of electricity production.
According to Kirchner, Ukraine’s energy sector, suffering significant losses, requires not only quick repairs but sustainable reconstruction in accordance with energy efficiency and green technology standards. Kirchner expects that this sector will attract investment as part of reconstruction efforts, namely from German companies.
A reminder that, in July 2024, the National Bank of Ukraine (NBU) slightly upgraded the country’s economic growth forecast for 2024 to 3.7%.
Source: Russian strikes on Ukraine’s energy objects decrease GDP growth rate – German economist
