Ukraine

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Since 2000, Ukraine has experienced economic growth each year with, in 2008, a new advance of GDP of +6.4% over the first nine months. The main driving forces of growth are household consumption (+30.6% in 2007 in comparison with 2006) and investment (+32.6% in 2007 in comparison with 2006). The average salary is now 1 475 UAH (292 USD). For three years, access to credit has favored household consumption. The strong development of credit can be explained especially by the arrival of foreign banks with greater financial capacities.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	108.00	143.19	179.73e	114.71	125.15e
GDP (constant prices, annual % change)	7.3	7.9	2.1	-8.0	1.0e
GDP per capita (USD)	2,324	3,100	3,920	2,521	2,771e
Inflation rate (%)	9.0	12.8	25.2e	16.8	10.0
Unemployment rate (% of the labor force)	-	-	7.0	-	-
Current Account (billions USD)	-1.62	-5.27	-12.93	0.71	1.77e
Current Account (in % of GDP)	-1.5	-3.7	-7.2e	0.6	1.4e

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

Note: (e) Estimated data

Main sectors of industry

The agriculture sector has a major role in Ukraine’s economy and contributes nearly 10% to GDP. The main crops are: cereals, sunflower seeds and sugar. Ukraine is the 5th largest exporter of cereals in the world. Ukraine is rich in mineral resources – the principal ones being iron, magnesium, and coal. Ukraine is the 6th largest producer of iron in the world. The Ukrainian manufacturing sector is dominated by heavy industries like iron and steel (30% of industrial production), coal mining, chemicals, mechanical products, and shipbuilding. Manufactured goods include airplanes, turbines, metallurgical equipment, diesel locomotives, and tractors. Much of the former USSR's space and rocket industry also exists in Ukraine. Although oil and natural gas reserves are limited, Ukraine is one of the world's leading energy transit countries, providing transportation of Russian and Caspian oil and gas across its territory.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	19.4	24.2	56.4
Value added (in % of GDP)	7.6	37.2	55.3
Value added (annual % change)	-5.0	10.5	10.2

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Ukrainian Hryvnia (UAH) - Average annual exchange rate for 1 USD	5.32	5.12	5.05	5.05	5.27

Source: International Monetary Fund - IMF

Indicator of economic freedom

Score:: 48.8/100
Position:: repressed
World Rank:: 152 out of 179
Regional Rank:: 42 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Ukraine encourages foreign trade and investment. The share of foreign trade in the country’s GDP has reached nearly 115%. One third of Ukraine's exports go to Europe, while nearly one quarter goes to Russia and the CIS countries. The top three export partners are: Russia, Turkey and Italy. The commodities mainly exported are iron and steel, mineral fuels and oils, nuclear reactors and boilers, machinery and machine tools (nearly 30% of exports), and cereals. The top three import partners are: Russia, Germany, and Turkmenistan. Ukraine mainly imports mineral fuels and oils, nuclear reactors and boilers, machinery, vehicles, electric and electronic equipment, and plastics. Russia is a major supplier of oil and gas to Ukraine, constituting nearly one third of total imports.

Ukraine's foreign trade was in deficit in 2007 with imports of 45.5 billion USD for 40.2 billion USD of exports. A deficit of 5.3 billion USD. Yet exports are growing at a sustained rate and the leading products are metals, fertilizers and cereals. Ukraine's imports are growing faster than exports, which should make the trade deficit worse in 2008. Ukraine's main suppliers are Russia and the European Union. Ukraine's joining the WTO on May 16 2008 should boost the country's imports however. The total amount of foreign investment in Ukraine is 26.86 billion USD, that is 576 USD per capita.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	23,221	29,691	36,159	44,143	60,412
Exports of goods (millions USD)	23,739	33,432	35,024	38,949	49,840
Imports of services (millions USD)	4,444	6,622	7,548	9,164	11,741
Exports of services (millions USD)	5,214	7,859	9,354	11,290	14,161
Imports of goods and services (annual % change)	3.3	15.5	2.1	6.8	19.9
Exports of goods and services (annual % change)	7.4	21.3	-11.2	-5.6	3.2
Imports of goods and services (in % of GDP)	55.2	53.7	50.6	49.5	50.9
Exports of goods and services (in % of GDP)	57.8	61.2	51.5	46.6	45.3
Trade Balance (millions USD)	518	3,741	-1,135	-5,194	-10,572
Trade Balance (including service) (millions USD)	1,288	4,978	671	-3,068	-8,152
Foreign trade (in % of GDP)	112.9	114.9	102.1	96.1	96.2

Main partner countries

Main customers (% of exports)	2008
Russia	23.5%
Turkey	6.9%
Italy	4.3%
Poland	3.5%
Belarus	3.1%
United States	2.9%
Germany	2.7%
Kazakhstan	2.7%
Egypt	2.3%
Hungary	2.0%
Moldova	1.8%
Netherlands	1.7%
Bulgaria	1.7%
Syria	1.5%
India	1.5%
Jordan	1.5%
Saudi Arabia	1.4%
United Arab Emirates	1.4%
Azerbaijan	1.4%
Slovakia	1.4%
See more countries	58.6%

Main suppliers (% of imports)	2008
Russia	22.7%
Germany	8.4%
Turkmenistan	6.6%
China	6.6%
Poland	5.0%
Kazakhstan	3.6%
United States	3.3%
Belarus	3.3%
Japan	3.3%
Italy	2.8%
Uzbekistan	2.5%
South Korea	2.4%
Turkey	2.3%
France	2.0%
Czech Republic	1.6%
United Kingdom	1.6%
Netherlands	1.5%
Hungary	1.5%
Romania	1.4%
Switzerland	1.3%
See more countries	50.7%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Iron and steelIron and steel	34.3%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	6.1%
CerealsCereals	5.5%
Articles of iron or steelArticles of iron or steel	5.3%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	5.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	4.2%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	4.0%
Ores, slag and ashOres, slag and ash	3.2%
FertilizersFertilizers	3.0%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	2.9%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	2.4%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	2.1%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	1.9%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	1.2%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	1.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	1.0%
Plastics and articles thereofPlastics and articles thereof	1.0%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.8%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.8%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.8%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.7%
Organic chemicalsOrganic chemicals	0.7%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.5%
Rubber and articles thereofRubber and articles thereof	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Commodities not specified according to kindCommodities not specified according to kind	0.5%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.4%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.4%
Miscellaneous chemical productsMiscellaneous chemical products	0.4%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.3%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.3%
Ships, boats and floating structuresShips, boats and floating structures	0.3%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.3%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.2%
Pharmaceutical productsPharmaceutical products	0.2%
Glass and glasswareGlass and glassware	0.2%
Ceramic productsCeramic products	0.2%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	0.2%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.1%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.1%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.1%
Meat and edible meat offalMeat and edible meat offal	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
See more products	43.5%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	26.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	13.3%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	11.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	4.5%
Plastics and articles thereofPlastics and articles thereof	4.1%
Iron and steelIron and steel	3.9%
Pharmaceutical productsPharmaceutical products	2.8%
Ores, slag and ashOres, slag and ash	2.4%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.9%
Articles of iron or steelArticles of iron or steel	1.7%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.4%
Rubber and articles thereofRubber and articles thereof	1.1%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.1%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.0%
Miscellaneous chemical productsMiscellaneous chemical products	1.0%
Meat and edible meat offalMeat and edible meat offal	1.0%
Organic chemicalsOrganic chemicals	0.9%
Railway or tramway locomotives, rolling-stock and...Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds	0.7%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.7%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.7%
FertilizersFertilizers	0.7%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.7%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.7%
Commodities not specified according to kindCommodities not specified according to kind	0.6%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.6%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.6%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Ceramic productsCeramic products	0.6%
Aluminium and articles thereofAluminium and articles thereof	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.5%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Glass and glasswareGlass and glassware	0.5%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.4%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.4%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.4%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.4%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.3%
Copper and articles thereofCopper and articles thereof	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.3%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.3%
CottonCotton	0.2%
Man-made filamentsMan-made filaments	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
CerealsCereals	0.2%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.2%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.2%
Nickel and articles thereofNickel and articles thereof	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.1%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
See more products	40.2%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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 A. YUSHCHENKO (since January 2005) - NSNU
Prime Minister: Yulia TYMOSHENKO (since December 2007)
Next election dates: Presidential: October 2009
Supreme Council: March 2011