Ukrainian Economy

Ukraine is one of the biggest domestic markets in Europe with a significant yearly increase in purchasing power. It is strategically located close to EU accession countries, the Black Sea and the Caucasus region, making Ukraine an important transit state.

A highly educated labour force, fertile agricultural land and a variety of mineral resources offer companies great opportunities to enter this promising market.

The stimulation of exports and investment activities has contributed to a considerable growth of Ukraine’s economy since the year 2000. The external sector has played an important role behind the robust performance, helped by the strong real currency depreciation observed during 1998 and 1999. Furthermore, strong domestic demand growth, both in consumption and investment, has given an additional stimulus to the economic expansion. Despite these results, crucial structural reforms in sectors such as energy and infrastructure remain pending and will continue to grow. The latest government figures show that GDP growth in 2006 rose to 6.5%. International business relations exist with partners from all over the world. Ukraine cultivates business connections with partners from more than 200 countries.

The country’s economic growth in recent years is partly due to freer movement of capital, growing demand for investments, comparatively low labour costs and the activity of domestic investors. Attracting foreign capital is still a key challenge to ensure economic reforms and economic growth.

The Ukrainian Government is determined to improve the investment climate and transparency and stability of the legal framework. In order to stimulate the inflow of foreign capital eleven economic zones and nine priority development areas have been established, covering 10.5% of Ukraine’s territory. Within these areas investments are officially supported by the state.