According to new data released by the State Statistics Service of Ukraine, the nation’s gross domestic product (GDP) jumped sharply by 19.5% from April through June, compared to one year prior.

Analysts attribute the massive surge, the highest on record for the nation, to the low base effect following the steep decline seen immediately following the start of the Russian military invasion of Ukraine.

Between January and March of this year, the nation’s economy contracted 10%. Over the second quarter of 2022, the nation’s GDP declined by 37.2%. Over the second half of 2022, the total rate of decline was roughly 30%.

In addition to the low base effect, the GDP was also lifted by a robust increase in domestic consumption.

Olena Bilan, chief economist at Kiev-based investment bank Dragon Capital, said in an interview with Bloomberg, “People are getting used to it. Life goes on and, amid the troubles, one wants to enjoy oneself by making a purchase or taking a vacation.”

In its latest forecast, the National Bank of Ukraine predicts the economy will increase further by 2.9% by the end of the year. The forecast will be revised again in October.

The outlook of the regulator is of vital importance because the economic performance of the nation is tied to Ukraine’s GDP warrants which mature in 2041.

If annual output beats 3%, Kiev will have to pay on the securities, although the leadership of the country is looking to perform an overhaul of its international debt in 2024, following a two-year standstill period enacted in August of 2022 as a result of the military conflict with Russia.