Economy Of Ukraine - Ukraine Information

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Economy Of Ukraine
Ukraine Information - Country Guides

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 December 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. 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, streamline the regulatory process, create a legal environment to encourage entrepreneurs, 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. GDP in 2000 showed strong export-based growth of 6% - the first growth since independence - and industrial production grew 12.9%. The economy continued to expand in 2001 as real GDP rose 9% and industrial output grew by over 14%. Growth of 4.1% in 2002 was more moderate, in part a reflection of faltering growth in the developed world. In general, growth has been undergirded by strong domestic demand, low inflation, and solid consumer and investor confidence. Growth was a sturdy 8.2% in 2003 despite a loss of momentum in needed economic reforms.
GDP	purchasing power parity - $260.4 billion (2004 est.)
GDP - real growth rate	9.4% (2004 est.)
GDP - per capita	purchasing power parity - $5,400 (2004 est.)
GDP - composition by sector	agriculture: 18.8% industry: 44.8% services: 36.4% (2004 est.)
Investment gross fixed	21% of GDP (2004 est.)
Population below poverty line	29% (2003 est.)
Household income or consumption by percentage share	lowest 10%: 3.7% highest 10%: 23.2% (1999)
Distribution of family income - Gini index	29 (1999)
Inflation rate consumer prices	5.2% (2004 est.)
Labor force	21.29 million (2004 est.)
Labor force by occupation	agriculture 24%, industry 32%, services 44% (1996)
Unemployment rate	3.7% officially registered; large number of unregistered or underemployed workers (2004 est.)
Budget	revenues: $14.1 billion expenditures: $14.19 billion, including capital expenditures of na (2004 est.)
Public debt	28.7% of GDP (2004 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	15.8% (2004 est.)
Electricity production	164.7 billion kWh (2001)
Electricity production by source	fossil fuel: 48.6% hydro: 7.9% other: 0% (2001) nuclear: 43.5%
Electricity consumption	152.4 billion kWh (2001)
Electricity exports	800 million kWh (2001)
Electricity imports	0 kWh (2001)
Oil production	86,490 bbl/day (2001 est.)
Oil consumption	290,000 bbl/day (2001 est.)
Oil exports	NA (2001)
Oil imports	NA (2001)
Oil proved reserves	197.5 million bbl (1 January 2002)
Natural gas production	18.2 billion cu m (2001 est.)
Natural gas consumption	74.1 billion cu m (2001 est.)
Natural gas exports	0 cu m (2001 est.)
Natural gas imports	55.9 billion cu m (2001 est.)
Natural gas proved reserves	560.7 billion cu m (1 January 2002)
Current account balance	$2.891 billion (2004 est.)
Exports	$23.63 billion (2004 est.)
Exports commodities	ferrous and nonferrous metals, fuel and petroleum products, chemicals, machinery and transport equipment, food products
Exports partners	Russia 17.8%, Germany 5.9%, Italy 5.3%, China 4.1% (2003)
Imports	$23.58 billion (2003 est.)
Imports commodities	energy, machinery and equipment, chemicals
Imports partners	Russia 35.9%, Germany 9.4%, Turkmenistan 7.2% (2003)
Reserves of foreign exchange gold	$6.937 billion (2004 est.)
Debt external	$16.13 billion (2004 est.)
Economic aid recipient	$637.7 million (1995); IMF Extended Funds Facility $2.2 billion (1998)
Currency	hryvnia (UAH)
Currency code	UAH
Exchange rates	hryvnia per US dollar - 5.3327 (2003), 5.3266 (2002), 5.3722 (2001), 5.4402 (2000), 4.1304 (1999)
Fiscal year	calendar year

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Economy Of UkraineUkraine Information - Country Guides

Economy Of Ukraine
Ukraine Information - Country Guides