Ukraine's GDP surges 19.5 percent in Q2 2023 due to low base effect

(MENAFN) The most recent data from Ukraine's State Statistics Service reveals a remarkable and unprecedented surge in the country's gross domestic product (GDP), with an astonishing increase of 19.5 percent during the period spanning from April to June when compared to the same timeframe in 2022. This remarkable economic upswing has garnered significant attention, particularly as it represents the highest growth rate ever recorded in Ukraine's economic history.

This surge in GDP can be primarily attributed to a phenomenon known as the "low base effect." Essentially, this refers to the substantial drop in economic activity that occurred shortly after the initiation of Russia's military operation in Ukraine. In this context, the low base effect means that the current GDP figures appear much more impressive due to the dismal economic conditions in the same period the year before.

To put this into perspective, the Ukrainian economy experienced a severe contraction of 10 percent in the initial quarter of this year. The situation was even direr in the second quarter of the preceding year, with GDP plummeting by a staggering 37.2 percent. This downward trajectory persisted throughout the latter half of last year, with the GDP decline hovering around 30 percent.

MENAFN24092023000045015682ID1107128596