Ukrainian Economy
Economy - overview: After Russia, the Ukrainian republic was the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) in other regions of the former USSR.
Shortly after independence in August 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level. Outside institutions - particularly the IMF –encouraged Ukraine to quicken the pace and scope of reforms to foster economic growth. Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine's large shadow economy, but more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework. From 2000 until mid-2008, Ukraine's economy was buoyant despite political turmoil between the prime minister and president.
Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Ukraine depends on imports to meet about three-fourths of its annual oil and natural gas requirements and 100% of its nuclear fuel needs. In January 2009, after a two-week dispute that saw gas supplies cutoff to Europe, Ukraine agreed to 10-year gas supply and transit contracts with Russia that brought gas prices to "world" levels. The strict terms of the contracts further hobbled Ukraine's cash-strapped state gas company, Naftohaz. The economy contracted nearly 15% in 2009, among the worst economic performances in the world. In April 2010, Ukraine negotiated a price discount on Russian gas imports in exchange for extending Russia's lease on its naval base in Crimea.
Movement toward an Association Agreement with the European Union, which would commit Ukraine to economic and financial reforms in exchange for preferential access to EU markets, was curtailed by a November 2013 decision of President YANUKOVYCH. In response, on 17 December 2013 then President YANUKOVYCH and President PUTIN concluded a financial assistance package containing $15 billion in loans and lower gas prices. However, the end of the YANUKOVYCH government in February 2014 caused Russia to halt further funding. With the formation of an interim government in late February 2014, the international community began efforts to stabilize the Ukrainian economy, including a 27 March 2014 IMF assistance package of $14-18 billion. Russia’s seizure of the Crimean Peninsula created uncertainty as to the annual rate of growth of the Ukrainian economy in 2014.
GDP (purchasing power parity): $370.8 billion (2014 est.)
GDP (official exchange rate): $130.7 billion (2014 est.)
GDP - real growth rate: -6.8% (2014 est.)
GDP - per capita (PPP): $8,700 (2014 est.)
GDP - composition by sector: agriculture: 12.1%
industry: 29%
services: 58.8% (2014 est.)
Labor force: 22.11 million (2014 est.)
Labor force - by occupation: agriculture: 5.6%
industry: 26%
services: 68.4% (2012)
Unemployment rate: 10.5% (2014 est.)
Household income or consumption by percentage share: lowest 10%: 3.8%
highest 10%: 22.5% (2011 est.)
Investment (gross fixed): 24.9% of GDP (2009 est.)
Budget: revenues: $39.14 billion
expenditures: $45.85 billion
note: this is the planned, consolidated budget (2014 est.)
Public debt: 66.2% of GDP (2014 est.)
Inflation rate (consumer prices): 12.1% (2014 est.)
Central bank discount rate: 7.5% (31 January 2012)
Commercial bank prime lending rate: 18% (31 December 2014 est.)
Agriculture - products: grain, sugar beets, sunflower seeds, vegetables; beef, milk
Industries: coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food processing (especially sugar)
Industrial production growth rate: -9% (2014 est.)
Electricity - production: 187.1 billion kWh (2012 est.)
Electricity - consumption: 159.8 billion kWh (2012 est.)
Electricity - exports: 6 billion kWh (2012 est.)
Electricity - imports: 89 million kWh (2012 est.)
Oil - production: 40,490 bbl/day (2014 est.)
Oil - consumption: 353,000 bbl/day (2008 est.)
Oil - exports: 1,218 bbl/day (2012 est.)
Oil - imports: 33,020 bbl/day (2012 est.)
Oil - proved reserves: 395 million bbl (1 January 2015 est.)
Natural gas - production: 21.1 billion cu m (2013 est.)
Natural gas - consumption: 47 billion cu m (2013 est.)
Natural gas - exports: 0 cu m (2013 est.)
Natural gas - imports: 25.9 billion cu m (2013 est.)
Natural gas - proved reserves: 1.104 trillion cu m (1 January 2014 est.)
Current account balance: -$5.228 billion (2014 est.)
Exports: $52.46 billion (2014 est.)
Exports - commodities: ferrous and nonferrous metals, fuel and petroleum products, chemicals, machinery and transport equipment, food products
Exports - partners: Russia 18.2%, Turkey 6.6%, Egypt 5.3%, China 5%, Poland 4.9%, Italy 4.6% (2014)
Imports: $60.4 billion (2014 est.)
Imports - commodities: energy, machinery and equipment, chemicals
Imports - partners: Russia 23.3%, China 10%, Germany 9.9%, Belarus 7.3%, Poland 5.6% (2014)
Reserves of foreign exchange and gold: $18.37 billion (31 December 2014 est.)
Debt - external: $126.3 billion (31 December 2014 est.)
Stock of direct foreign investment - at home: $61.97 billion (31 December 2014 est.)
Stock of direct foreign investment - abroad: $8.908 billion (31 December 2014 est.)
Exchange rates: hryvnia (UAH) per US dollar - 11.58 (2014 est.), 7.993 (2013 est.), 7.99 (2012 est.), 7.9676 (2011 est.), 7.9356 (2010 est.)
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Update: This page was last updated on 10 November 2015
Sources: 1. CIA, The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/ae.html
2. DIBNC Experts Team