Economy of Ukraine

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Economy - overview: After Russia, the Ukrainian republic was far and away 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. Ukraine depends on imports of energy, especially natural gas, to meet some 85% of its annual energy requirements. Shortly after independence in late 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 in 1992-99 fell to less than 40% the 1991 level. Loose monetary policies pushed inflation to hyperinflationary levels in late 1993. Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Now in his second term, President KUCHMA has pledged to reduce the number of government agencies and streamline the regulation process, create a legal environment to encourage entrepreneurs and protect ownership rights, and enact a comprehensive tax overhaul. Reforms in the more politically sensitive areas of structural reform and land privatization are still lagging. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms and have threatened to withdraw financial support. GDP in 2000 showed strong export-based growth of 6% - the first growth since independence - and industrial production grew 12.9%. As the capacity for further export-based economic expansion diminishes, GDP growth in 2001 is likely to decline to around 3%.

GDP: purchasing power parity - $189.4 billion (2000 est.)
GDP - real growth rate: 6% (2000 est.)
GDP - per capita: purchasing power parity - $3,850 (2000 est.)
GDP - composition by sector:
agriculture: 12%
industry: 26%
services: 62% (1998 est.)
Population below poverty line: 50% (1999 est.)
Household income or consumption by percentage share:
lowest 10%: 4.1%
highest 10%: 20.8% (1992)
Inflation rate (consumer prices): 20% (1999 est.)
Labor force: 22.8 million (yearend 1997)
Labor force - by occupation: industry and construction 32%, agriculture and forestry 24%, health, education, and culture 17%, trade and distribution 8%, transport and communication 7%, other 12% (1996)
Unemployment rate: 4.3% officially registered; large number of unregistered or underemployed workers (December 1999)
Budget:
revenues: $8.3 billion
expenditures: $8.8 billion (1999 est.)
Industries: coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food-processing (especially sugar)
Industrial production growth rate: 4.3% (1999 est.)
Electricity - production: 171 billion kWh (1999)
Electricity - production by source:
fossil fuel: 52%
hydro: 5.9%
nuclear: 42.1%
other: 0% (1999)
Electricity - consumption: 144.011 billion kWh (1998)
Electricity - exports: 7 billion kWh (1998)
Electricity - imports: 4.15 billion kWh (1998)
Agriculture - products: grain, sugar beets, sunflower seeds, vegetables; beef, milk
Exports: $11.6 billion (1999 est.)
Exports - commodities: ferrous and nonferrous metals, fuel and petroleum products, machinery and transport equipment, food products
Exports - partners: Russia 20%, EU 17%, China 7%, Turkey 6%, United States 4% (1999)
Imports: $11.8 billion (1999 est.)
Imports - commodities: energy, machinery and parts, transportation equipment, chemicals
Imports - partners: Russia 48%, EU 23%, United States 3% (1999)
Debt - external: $12.6 billion (January 2000 est.)
Economic aid - recipient: $637.7 million (1995); IMF Extended Funds Facility $2.2 billion (1998)
Currency: 1 hryvnia (UAH) = 100 kopiykas

SOURCE: The World Factbook

Mother Earth Travel > Country Index > Ukraine > Map Economy History