FITA helps you find
service providers for:

Market Research


flag Ukraine Ukraine: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

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.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 117.23137.93e162.85184.90202.26
GDP (Constant Prices, Annual % Change) -14.54.24.74.84.5
GDP per Capita (USD) 2,5503,0133,5754,0794,485
General Government Balance (in % of GDP) -2.8-3.1e-1.6e-1.4-2.0
General Government Gross Debt (in % of GDP) 35.440.139.3e39.439.0
Inflation Rate (%) 15.99.4e9.3e9.17.5
Unemployment Rate (% of the Labor Force) 8.88.17.87.47.2
Current Account (billions USD) -1.73-2.88-6.34-9.71-9.90
Current Account (in % of GDP) -1.5-2.1-3.9e-4.9-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

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) 15.8 23.4 60.7
Value Added (in % of GDP) 8.1 29.0 62.8
Value Added (Annual % Change) 3.5 3.5 1.0

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Ukrainian Hryvnia (UAH) - Average Annual Exchange Rate For 1 USD 5.055.055.277.797.94

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Ukraine on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
45.8/100
Position:
Controlled
World Rank:
157/179
Regional Rank:
42/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

Return to top

Foreign Trade in Figures

Ukraine is a very open economy and the share of foreign trade in the country’s GDP has reached over 100%. The recession in 2009 led to a drop in exports and a reduction in domestic demand, leading to a considerable adjustment of the trade balance, since imports declined more rapidly than exports and later grew also less rapidly. Ukraine's three main suppliers are: Russia, the Commonwealth of Independent States (CIS), Germany, Italy, China, Poland, Turkmenistan and Turkey. Russia is a major supplier of oil and gas, almost a third of Ukrainian total imports. The Ukraine mainly imports fuels and oil, machinery, vehicles, electric and electronic equipment and plastics.

Its main customers are Russia and the CIS (25%), Turkey and Europe. Main export goods are iron and steel, fuels and oil, nuclear reactors and boilers, machinery and machine tools (nearly 30% of exports), and cereals.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 45,03960,61885,53545,48760,910
Exports of Goods (million USD) 38,36849,29666,95439,78251,479
Imports of Services (million USD) 8,58211,05515,77711,07011,037
Exports of Services (million USD) 10,82213,65117,30213,32416,041
Imports of Goods and Services (Annual % Change) 6.819.912.5-38.68.8
Exports of Goods and Services (Annual % Change) -5.63.22.5-25.66.2
Imports of Goods and Services (in % of GDP) 49.550.447.848.148.9
Exports of Goods and Services (in % of GDP) 46.644.841.746.446.7
Trade Balance (million USD) 5,19410,57216,0914,3078,712
Trade Balance (Including Service) (million USD) 3,0688,15214,3501,9533,850
Foreign Trade (in % of GDP) 96.195.289.694.595.6

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
Russia 26.1%
Turkey 5.9%
Italy 4.7%
Belarus 3.7%
Poland 3.5%
See More Countries 56.1%
Main Suppliers
(% of Imports)
2010
Russia 36.5%
China 7.7%
Germany 7.6%
Poland 4.6%
Belarus 4.2%
See More Countries 39.3%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Semi-finished products of iron or non-alloy steelSemi-finished products of iron or non-alloy steel 10.4%
Flat-rolled products of iron or non-alloy steel,...Flat-rolled products of iron or non-alloy steel, of a width >= 600 mm, hot-rolled, not clad, plated or coated 5.8%
Iron ores and concentrates, incl. roasted iron...Iron ores and concentrates, incl. roasted iron pyrites 4.8%
Sunflower-seed, safflower or cotton-seed oil and...Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified 4.6%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.3%
See More Products 70.1%
Main Imports
(% of Imports)
2010
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons 15.7%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 6.9%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 6.4%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 3.5%
Coal; briquettes, ovoids and similar solid fuels...Coal; briquettes, ovoids and similar solid fuels manufactured from coal 2.9%
See More Products 64.6%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

Return to top

Sources of General Economic Information

Ministries
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
PFTS Exchange
Search Engines
Meta Ukraine
GOOGLE Ukraine (website in Russian)
TOPPING Ukraine (website in Russian)
Yandex Ukraine (website in Russian)
Economic Portals
"Korrespondent" Review (website in Russian)
"MIG-news" agency
"Brama" agency
"Management consulting" agency

Return to top

Political Outline

Executive Power
The President is the head of State and is elected by popular vote for a five-year term. The President is the commander-in-chief of the armed forces. The Prime Minister is appointed as the head of the government by the President after parliament selects him as the leader of the major political party or alliance to serve a five-year term. The executive power is shared between the President and the Prime Minister. The Cabinet of Ministers is selected by the Prime Minister; the only exceptions are the Foreign Minister and the Minister of Defense who are chosen by the President.
Legislative Power
The legislature in Ukraine is unicameral. The parliament called Supreme Council consists of 450 seats with its members chosen on a proportional basis from those parties that gain 3% or more of the national electoral vote; members serve five-year terms. The President has the power to dissolve the Supreme Council, if he so wishes. The people of Ukraine have limited political rights.
Main Political Parties
The main political parties in Ukraine are:
Bloc Yulia Tymoshenko (129 members of the Supreme Council), led by a charismatic woman politician, Yulia Tymoshenko, who advocates the market economy and democratic values.
Party of the Regions (186 members of the Supreme Council), left-wing, advocates the increase of social spending and a pro-Russian foreign policy.
Popular Party "Our Ukraine" (81 members of the Supreme Council), the President's party which advocates political reform and massive privatization of the economy.
Current Political Leaders
President: Viktor YANUKOVYCH (since February 2010) - Party of Regions
Prime Minister: Mykola AZAROV (since March 2010) - Party of Regions
Next Election Dates
Presidentials: 2015
Supreme Council: March 2011
 

Indicator of Freedom of the Press

World Rank:
131/178
Evolution:
41 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
3/7
Civil Liberties:
2/7

Map of freedom 2010

 

Return to top

Any Comments About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Last Updates: January 2012