The economy of Ukraine is an emerging free
market In 2008, Ukraine 's
economy was ranked 45th in the world according to 2008 GDP (nominal) with the
total nominal GDP of 188 billion USD, and nominal per capita GDP of 3,900 USD The Ukraine ’s
GDP fell sharply for the first 10 years of its independence from the Soviet Union and then experienced rapid growth from 2000
until 2008
The country's economy experienced a deep recession
during the 1990s, including hyperinflation and a drastic fall in economic
output In 1999, at the lowest point of
the economic crisis, Ukraine's per capita GDP was about half of the per capita
GDP it achieved before independence.
Agriculture:
Ukraine a major global producer of grain and sugar,
and future global player on meat and dairy markets It is the world's largest producer of
sunflower oil, and is also one of the largest producers of nuts. Ukraine also produces more natural
honey than any other European country.
Since Ukraine possesses 30% of the world's
richest black soil, its agricultural industry has a huge potential. However, farmland remains the only major asset
in Ukraine that is not privatized, hampering access to international
investments and the best farming technologies The agricultural industry in Ukraine is
already one of the worlds larges production areas, however according to
analysts its outputs could still rise up to fourfold
Mining:
Coal reserves in Ukraine amount to 47.1 billion tons.
The annual domestic demand for coal as
fuel is about 100 million tons, of which 85 percent can be satisfied by
domestic production. Ukraine has oil
and gas fields that meet 10 percent of her oil and 20 percent of her gas
consumption, respectively. Ukraine contains natural gas reserves of 39..6
trillion cubic feet, but only about 20 percent of the country's demand is met
by domestic production Deposits of iron ore (estimated at 28 billion
tons), manganese ore (3 billion tons), chalk and limestone (1 5 billion tons)
are also extensive in Ukraine
Oil & Fuel industry
Communications & Information technology
Almost 20 million Ukrainians had Internet access in
December 2012. In Kyiv 90% of population
had internet access. The number of
Internet users in Ukraine
was expected to nearly double by 2015
The mobile-cellular telephone system's expansion
has slowed, largely due to saturation of the market which has reached 125
mobile phones per 100 people.
Financing, banking, and Investments
The EU isUkraine 's largest trading partner,
with 27 1% of exports and 33 7% of imports in 2008; and trade with EU has seen
strong double-digit growth in recent years. The Russian
Federation is Ukraine 's second largest trading
partner, with 21 1% of exports and 28% of imports in 2009. Overproduction in the world steel market,
especially from China , threatens
prospects for Ukraine 's
principal exports of non-agricultural goods such as ferrous metals and other
steel products. Although exports of
machinery and machine tools are on the rise, it is not clear if the rate of
increase is large enough to make up for probable declines in steel exports,
which today account for 46% of the country's overall exports .
State enterprise InvestUkraine was created under the State Agency for Investment and National Projects to serve as a One Stop Shop for investors and to deliver investment consulting services.Ukraine signed a shale gas
exploitation deal with Royal Dutch Shell on 25 January 2013. The $10 billion deal was the largest foreign
direct investment ever for Ukraine .
The EU is
In 1992, Ukraine became a member of the IMF and the World Bank. It is a member of the European Bank for Reconstruction and Development and in 2008 the country joined World Trade Organization. The IMF approved a $2.2 billion Extended Fund Facility (EFF) with Ukraine in September 1998. In July 1999, the 3-year program was increased to $2 6 billion. Ukraine 's failure to meet monetary targets and/or structural reform commitments caused the EFF to either be suspended or disbursements delayed on several occasions. The last EFF disbursement was made in September 2001
A political crisis in the middle of 2006 was feared as a threat to economic and investment stability, however, despite the forecasts, the political situation has not scared investors. The GDP showed a good growth rate of 7% in 2007, compared to the previous year. Industrial output has increased and car sales soared, while the banking sector has expanded, thanks to the arrival of several major European banks.
Ukraine encourages foreign trade and investment The Parliament of Ukraine has approved a foreign investment law allowing Westerners to purchase businesses and property, to repatriate revenue and profits, and to receive compensation if the property is nationalized by a future government However, complex laws and regulations, poor corporate governance, weak enforcement of contract law by courts, and corruption all continue to stymie direct large-scale foreign investment in Ukraine. While there is a functioning stock market, the lack of protection for shareholders' rights severely restricts portfolio investment activities
State enterprise InvestUkraine was created under the State Agency for Investment and National Projects to serve as a One Stop Shop for investors and to deliver investment consulting services.