COUNTRY PROFILESNEW NORTHERN EUROPE
CENTRAL & EASTERN EUROPE
AUSTRIA/GERMANY/SWITZERLAND
MEDITERRANEAN
NORTH WEST EUROPE
|
UkraineCapital Currency Language Population EU status GDP 2006 Employment Exports Imports |
setting up businessNumber of days to Cost Nonwage labor cost Total tax rate (% profits) |
COUNTRY PROFILE
 |
Ukraine |
Print article An economy that’s ready to go places |
In 2006 Ukraine celebrated the 15th anniversary of its independence. Over the last 15 years, the country has overcome stagnation, hyperinflation and a mid-90s economic crisis to achieve some of the fastest economic growth rates among the ex-USSR republics. Ukraine has real prospects for further dynamic development and growth both in the short and long term as foreign and domestic businesses continue to invest for the future.
real, rapid growth
In January 2007, real annual GDP growth was 9.3% over January 2006 (in January 2006 it was at 0.9%). The estimated assessment of nominal volume of GDP for January 2007 was UAH 44.1 million (5 UAH = $1). During January 2007 the biggest growth of GDP came from building at 26.3%. Other significant increases were seen in the processing industry, up by 18.9%, and trade, car repairs, household products, up by 13.2%.
THE FDI SECTOR
The total amount of direct foreign investments into Ukraine, as of January 1st, 2007 was $21 billion or $454 per capita, highlighting that Ukraine is underinvested and opportunities abound. The main source of investment continues to be internally generated funds from companies. Approximately two-thirds of all capital investments are made in this fashion.
There was a significant increase of foreign capital in 2006. Large sums were funneled into the banking and financial services sector, which received a total of $1,273.6 million. Real estate, engineering and business services operations accounted for $717.3 million of FDI in 2006, industrial production for $834.3 million, including $72.0 million for extracting, and the processing industry for $752.5 million.
Overall, the Ukrainian economy attracted $3.2 billion of direct foreign investment in January–September 2006. Most of the investment is from Cyprus, USA, United Kingdom, the Virgin Islands, the British Isles, the Netherlands, Germany, Russian Federation, Switzerland, Austria and Poland. These countries have contributed more than three-quarters of total direct investments into Ukraine since independence.
Investment targets
FDI has been primarily channeled into quickly recoverable and high-growth sectors of the economy including banking and consumer financing, wholesale trade companies and trade intermediation, the food industry and agricultural production processing. As the first stop for most foreign companies looking to invest into the Ukrainian market the Chamber has seen continued and increased interest in:
- agricultural industry including input and equipment provision, managed farming, food processing and finished goods as well as commodity exports;
- transport and communications;
- banking and financial services;
- commercial real estate including retail / entertainment, office and warehousing and logistics centers;
- fast-moving consumer goods;
- consumer electronics and light manufacturing;
- chemical and petrochemical industry;
- construction materials;
- retail and wholesale trade.
Industry contributes more than 40% of GDP and accounts for more than one-quarter of total employment. Ukraine is a major center for heavy machinery and industrial equipment production. It also has a welldeveloped chemical industry that produces various plastics, tires and fertilizers. The Ukrainian aerospace and defense industry, which includes more than 500 military enterprises and research institutes, is known for its state-of-the-art technology and reliable equipment.
Agriculture accounts for about 25% of Ukraine’s total GDP and the same percentage of total employment. Ukraine is a major producer and exporter of a wide variety of agricultural products. This sector offers diverse opportunities for foreign investments, especially in the field of foodprocessing and storage. Ukraine has a lot to offer the international business investor – a diverse manufacturing base; large deposits of natural resources; extensive and extremely fertile farmland; developed transportation network including excellent port facilities; unique location in the center of Europe and a large consumer market.
Despite the complexities of doing business in Ukraine it has become a place of great opportunity for foreign investors due to its enormous agricultural and industrial potential, recent reforms that have provided political and fiscal stability, and a highly educated population.
About the Chamber
The American Chamber of Commerce in Ukraine is among the most active and effective non-government, non-profit business organizations operating in Ukraine.
One of the Chamber’s principal activities is to represent the foreign investment community and to facilitate the entrance of potential new investors into the Ukrainian market. We advocate to the Ukrainian government, and to the governments of the economic partners of Ukraine, on matters of trade, commerce, and economic reform. Member organizations represent many of the largest strategic and institutional investors operating in Ukraine, including investors from North America, Europe, Asia, Russia, and Ukraine. Chamber members collectively employ hundreds of thousands of Ukrainians, bringing international expertise and business knowledge to Ukraine.
 |
Contact Information
American Chamber of
Commerce in Ukraine
42-44 Shovkovychna vul
LL1 Floor
Kiev 01601
Ukraine
Tel: +380 44 490 5800
E-mail: acc@amcham.ua
Website: www.amcham.kiev.ua
Useful websites
| www.worldbank.org/ua | Economy and investment in Ukraine |
| kiev.usembassy.gov | US Embassy in Ukraine |
| www.ukraineinfo.us | Ukrainian Embassy in the US |
| www.e-ukraine.org | National and regional development |
| www.fita.org/countries/ukraine | General and business information |
back