Economic Trends/Outlook in Ukraine
After years of strong growth, in 2009 Ukraine experienced one of the worst recessions in Europe. Growth rate decreased by -15%, under the joint effect of a decline in economic activity, drying up of foreign funding and a crisis in the global demand for steel. The country faced a collapse of its industrial production, a currency crisis, an inflation hike, and a weakening of its banking system and eventually had to be saved by the International Monetary Fund (IMF). Ukraine resumed growth in 2010 (3.7%), thanks to the recovery of international trade and a political stabilization following the March elections.
The new government elected in Mars has reestablished relations with the IMF (which had been suspended due to the country’s failure to pursue the necessary reforms) and is committed to put in place the planned structural reforms: strengthen the competitiveness of the Ukrainian industrial sector, reform public administration, invest in regional development and deregulation and reform the financial system, fiscal procedures and public finances.
The economic crisis had a deep social impact in Ukraine. Unemployment rose sharply, finally leveling off at just below 9% in 2010. Wage levels have also declined.
For more information, you can refer to the Ukraine Economy Watch website.
|GDP (billions USD)||117.40e||136.42e||157.61e||171.37e||175.54e|
|GDP (Constant Prices, Annual % Change)||-14.8e||4.2e||4.5e||4.9e||4.5e|
|GDP per Capita (USD)||2,569e||3,000e||3,483e||3,806e||3,918e|
|General Government Balance (in % of GDP)||-2.8e||-3.1e||-1.6e||-2.0e||-2.5e|
|General Government Gross Debt (in % of GDP)||35.3e||40.5e||42.6e||43.5e||41.5e|
|Inflation Rate (%)||15.9||9.4e||9.2e||8.3e||7.0e|
|Unemployment Rate (% of the Labor Force)||8.8e||8.1e||7.8e||7.2e||7.0e|
|Current Account (billions USD)||-1.94e||-2.91e||-3.17e||-2.89e||-|
|Current Account (in % of GDP)||-1.7e||-2.3e||-2.3e||-1.9e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
The agricultural sector has a major role in Ukraine’s economy. It employs around 17% of the population and contributes around 10% to the GDP. The main crops are cereals, sugar, meat and milk. Ukraine is the fifth biggest exporter of cereals in the world. Ukraine is rich in mineral resources, the main ones being iron and magnesium, and in energy resources (coal and gas).
The secondary sector employs 24% of the population and contributes more than a half of the GDP. The Ukrainian manufacturing sector is dominated by heavy industries such as iron (Ukraine is the 6th biggest producer of iron in the world), and steel. These two sectors alone, account for 30% of the industrial production. Coal mining, chemical and mechanical products (airplanes, turbines, locomotives and tractors) and ship building are also important sectors. However, it is important to keep in mind that industrial production was much affected by the global economic crisis.
The service sector employs close to 60% of the workforce and contributes up to 38% of the GDP. Ukraine is an energy transit country, providing transportation to western Europe and the Balkans, for Russian and Caspian oil and gas through its territory.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||16.7||23.9||59.4|
|Value Added (in % of GDP)||8.2||29.4||62.4|
|Value Added (Annual % Change)||-0.3||-24.0||-11.7|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- World Rank:
- Regional Rank:
Sources of General Economic Information
Ministry of Economy
Ministry of Finance
Ukrainian Ministry of Agriculture
Ministry of Home Affairs
Ministry of the Coal Industry
Ministry of Public Services
Ministry of Foreign Affairs
Ukrainian Ministry of Culture and Tourism
Ukrainian Ministry of Defense
Ukrainian Ministry of Health
Ukrainian Ministry of Education
Ukrainian Ministry of the Family, Youth and Sport
Ukrainian Ministry of Labor and Social Policy
Ukrainian Ministry of Transport
Ukrainian Ministry of Finance
Ukrainian Ministry of Justice
- Statistical Office
State Statistics Committee of Ukraine
- Central Bank
National Bank of Ukraine
- Stock Exchange
Ukrainian Stock Exchange
- Main Online Newspapers
- Economic Portals
"Korrespondent" Review (website in Russian)
"Management consulting" agency
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The Ukrainian economy remained stable throughout 2012 due to the demand for food products.
Foreign Agricultural Service on 11 Jan 2013 related to Economic Trends/Outlook in Ukraine
2012 Country Commercial Guide for U.S. Companies doing business in the Ukraine.
U.S. Commercial Service on 19 Aug 2012 related to Economic Trends/Outlook in Ukraine
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