The article presents key macroeconomic indicators of Ukraine and the global economy in January-November 2024. The analysis is based on official data from the State Statistics Service of Ukraine, the National Bank of Ukraine, the IMF, the World Bank, and the United Nations, on the basis of which Maksim Urakin, PhD in Economics, founder of the Experts Club Information and Analytical Center, presented an analysis of macroeconomic trends in Ukraine and the world. The key aspects of the report include the dynamics of gross domestic product (GDP), inflation, unemployment, foreign trade and public debt of Ukraine, as well as global macroeconomic trends.
Macroeconomic indicators of Ukraine
In 2024, Ukraine’s economy demonstrated moderate growth despite the ongoing challenges posed by the war and external economic factors. According to the Ministry of Economy of Ukraine, the country’s gross domestic product grew by 4.2% year-on-year in January-October 2024. In October, growth was 1.3% year-on-year. The main drivers of growth were construction, transportation, and manufacturing.
However, inflation remains a significant challenge for the economy. According to the State Statistics Service of Ukraine, annual inflation reached 12% in December 2024, accelerating from 8.6% in September. Consumer prices in December increased by 1.4% compared to November, when they grew by 1.9%.
“Inflation creates a significant burden on households and businesses. Combating price pressure requires thoughtful steps in monetary and fiscal policy,” Urakin emphasized.
The negative balance of foreign trade in goods in January-November 2024 increased by 3.6% compared to the same period in 2023, reaching $25.239 billion.
“This indicates high imports and insufficient export growth. It is necessary to strengthen support for exporters and develop strategically important industries to improve the trade balance,” said Maksim Urakin.
Ukraine’s international reserves increased by $3.863 billion or 9.7% in December and amounted to $43.788 billion as of January 1, 2025, according to preliminary data.
“The growth of reserves is due to the receipt of foreign currency from international partners, which in December exceeded the net sale of foreign currency by the National Bank and the country’s payments on foreign debts,” Maksim Urakin emphasized.
Global economy
Global economic activity remains heterogeneous. According to the International Monetary Fund, global economic growth in 2024 will be 3.1%. However, geopolitical instability, high interest rates, and slowing growth in key economies continue to weigh on the outlook.
The US economy is showing steady growth thanks to strong domestic demand. According to the US Bureau of Economic Analysis, the country’s GDP grew by 2.8% in the third quarter of 2024, driven by a 3.7% increase in consumer spending. The unemployment rate remained at 3.6%, indicating stability in the labor market. At the same time, inflation, although declining from its peak, remains at 3.9% year-on-year.
“The US economy remains the engine of global growth, but high interest rates and government spending cuts may slow its pace in 2025,” Urakin said.
The EU economy is showing weak growth rates. The forecast for 2024 has been lowered to 0.9%, and for the Eurozone countries – to 0.8%. Germany, the largest economy in the region, is under pressure due to the weakness of the industrial sector, where production fell by 1.2% year-on-year. Inflation in the Eurozone slowed to 4.2%, allowing the European Central Bank to consider easing monetary policy in 2025.
“The EU economy is facing a number of challenges, including the energy crisis and weakening external demand. These factors limit the potential for recovery,” Urakin emphasized.
India continues to demonstrate stable growth, remaining one of the fastest growing economies in the world. According to the Indian government, the country’s GDP will grow by 7% in 2024. The main growth drivers are the IT sector, industrial production and agriculture. Inflation remains under control at 5.2%, which allows the Reserve Bank of India to keep the key policy rate unchanged.
“India is strengthening its position as a global economic leader. Its steady growth and reforms in key sectors continue to attract significant investment,” Urakin said.
China’s economy grew by 4.6% in the third quarter of 2024, but the forecast for the year was lowered to 4.8% due to weak domestic demand and difficulties in the real estate sector. Corporate debt problems and slowing export growth continue to weigh on the economy.
“China is facing challenges that may limit its role in the global recovery. However, the measures taken to support the economy should reduce these risks,” Urakin added.
Economic indicators for Ukraine and the world in 2024 show a contradictory picture. GDP growth and positive signals from global markets are combined with inflationary risks and foreign trade imbalances. The global economy is also under pressure from many uncertainties.
“It is important for Ukraine to focus on structural reforms that stimulate export growth and attract foreign investment. Only sustainable development of key industries can ensure long-term economic stability,” summarized Maksim Urakin.
You can learn more about Ukraine’s foreign trade in 2024 in the video: https://www.youtube.com/watch?v=tFxad1mplE0&t
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