Europe > Ukraine > Economy

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Agriculture > products grain, sugar beets, sunflower seeds, vegetables; beef, milk
Aid as % of GDP	1.7%		[71st of 129]
Big Mac Index	$1.43		[62nd of 65]
Debt > External	$69,040,000,000.00		[38th of 136]
Distribution of family income > Gini index	31		[12th of 43]
Economic freedom	1.35		[133rd of 156]
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. Shortly after independence was ratified 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. 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. A dispute with Russia over pricing in late 2005 and early 2006 led to a temporary gas cut-off; Ukraine concluded a deal with Russia in January 2006 that almost doubled the price Ukraine pays for Russian gas. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms. 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. Ukraine's economy remains buoyant despite political turmoil between the Prime Minister and President. Real GDP growth reached about 7% in 2006-07, fueled by high global prices for steel - Ukraine's top export - and by strong domestic consumption, spurred by rising pensions and wages. Although the economy is likely to expand in 2008, long-term growth could be threatened by the government's plans to reinstate tax, trade, and customs privileges and to maintain restrictive grain export quotas.
Exports	$49,840,000,000.00		[48th of 189]
GDP	$106,110,900,000.00		[48th of 203]
GDP > PPP	$303,280,000,000.00		[29th of 163]
GDP > Real growth rate	7.7%		[36th of 198]
GINI index	28.06		[35th of 40]
Gross National Income	$35,185,000,000.00		[51st of 172]
Human Development Index	0.766		[78th of 178]
Income category	Lower middle income
Income distribution > Richest 10%	23.2%		[100th of 114]
Population below poverty line	37.7%		[21st of 46]
Poverty > Share of all poor people	0.14 % of world's poor		[34th of 80]
Public debt	11.7 % of GDP		[107th of 121]
Tourist arrivals	7,356,000		[16th of 152]

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