Ukraine is an emerging free-market economy with considerable growth and investment potential. Although greatly affected by the economic crisis of 2008, Ukraine considers 2010 the year of economic recovery and since then the country is regaining its position among CEE and other European countries.
The improvements in the business environment of Ukraine are starting to attract foreign investments, which gives a strong inflow of finances to the country.
The Ukrainian financial sector has undergone substantial changes and improvements in the past several years with an effective regulatory framework being progressively created and a modern financial system, based on market principles, steadily emerging. Conducting Business in Ukraine 2011 handbook, Baker&McKenzie
In Brief
- GDP $302.5 billion
- GDP per capita (PPP): $6,700 (2010 est.)
- GNI per capita (US$): 3,010.00
- Forecast for economic growth in 2011 5%
- Budget revenue: 42.8 % GDP (2010)
- Economically active population (15-70 years) – 22.1m
Key Facts
- 38th in the world by GDP of $302.5 billion (CIA, 2010) ;
- 82nd out of 142 countries in The Global Competitiveness Report 2011-2012 (+7 points comparing to 2010);
- low political risk, №67 in Democracy index (Comparing to Russia №107, Turkey №89, Georgia №103, China №136);
- 6.6 percent real gross domestic product growth year-on-year in the third quarter 2011, up from 3.8 in the second quarter 2011;
- the European Bank for Reconstruction and Development (EBRD) has raised its forecast for economic growth in Ukraine in 2011 from 4.5% to 5%;
- the ratings agency Fitch has changed its assessment of Ukraine’s implementation of its credit commitments from ‘stable’ to ‘positive’;
- the 2010’s inflation is 7-years minimum — 9.1%;
- improving tax environment: the corporate tax rate will be cut gradually by 9pp to 16% in 2014 and VAT rate by 3pp to 17% in 2014, one of the lowest rates in Europe;
- Ukraine’s key trading partners: EU and Russia.
Investments
- The Government of Ukraine has approved 163 investment projects worth a total of $46.6 billion
- Ukraine created a new Council of Domestic & Foreign Investors that includes the CEOs the biggest multinational corporations
- Foreign direct investment inflow has exceeded USD 1,000 per person mark for the first time ever and settled at USD 1,033
- Ukraine’s infrastructure investments for the European Football Championship Euro 2012 include $2 billion for airports, $4 billion for high-speed rail, and over $1 billion for highways and stadiums