Despite a political turmoil and external shocks, the economic growth in the country remained high. According to the Derzhkomstat, in 2007 real GDP grew by 7.3% yoy, thus preserving the growth pace of the previous year. In nominal terms, the GDP reached UAH 709.4 bn, or USD 140.5 bn.|
In line with expectations, the real GDP growth has gradually decelerated during the year, as the effect of low statistical base of the previous year vanished, while the impact of poor harvest revealed in the figures (see Agricultural output). The latter effect became obvious in August, when the value added in agriculture dropped sharply after high growth rates in June and July provoked by early harvesting season.
The contribution to value added growth was the highest in trades and manufacturing. While the growth of manufacturing significantly decelerated during the year from 18.9% yoy in January to 12.3% yoy by the end of the year, the growth of trade and repair services accelerated and reached 18.6% yoy backed by a strong development of domestic market and foreign trade.
The major contributor to manufacturing growth was machine building, followed by food and metal production. The expansion of
machine building was based on high investment activity in Ukraine and other CIS countries, driving up the demand on equipment and machinery. Also, production of durables, especially passenger cars, was stimulated by private demand in the region. Though, a significant portion of demand on investment and durable goods was satisfied by imports.
