From 2002 to 2008, the economy of Ukraine was on a steady rise.  However, Gross Domestic Product (GDP) growth rate declined sharply in 2009, as a result of a decline in investments, low external demand and domestic demand.

In 2009, the unfavourable economic conditions affected dynamics of most economic activities, except agriculture. Specifically, the largest decline was registered in fixed capital formation in GDP.

(Source: National Bank of Ukraine)

(Source: National Bank of Ukraine)

(Source: National Bank of Ukraine)

GDP was recorded at UAH 913,345 million in 2009, decreasing 3.66% compared to 2008. Per capita GDP in 2009 was UAH 19,832, falling 3.34% compared to previous year. In 2010, GDP improved and amounted to UAH 784.195 million till Q3 2010.

(Source: Statistics of Ukraine)

The country recorded a Gross National Income (GNI) of USD 128,920.18 million for 2009, decreasing 13.26% over 2008. Per Capita GNI was USD 2,800 for 2009.

 (Source: World Bank)

For 2010, GNI per capita PPP was recorded at USD 6,535.

(Source: undp.org)

In 2010, exports of Ukraine amounted to USD 68,982 million, while imports were valued at USD 72,670 million. In 2009, the balance of trade was a deficit of USD 1,953 million.

(Source: National Bank of Ukraine)

Tax rates

The individual income tax rate in Ukraine is 15%.

(Source: worldwide-tax)

Standard corporate income tax rate and the value added tax rate in Ukraine are levied at 25% and 20% respectively.

(Source: doingbusiness.org)

Inflation rate

The inflation rate in Ukraine declined in 2009, but further increased in Q2 and Q3 of 2010, the end of Q3 2010, the inflation rate is recorded at 10.5%.

Average annual inflation rate in 2009 was 15.9%.

(Source: World Bank)

(Source: National Bank of Ukraine)

Foreign direct investment (FDI)

FDI Inflow in Ukraine in 2010 amounted to USD 44,708 million, increasing 10.41% over 2009.

(Source: Statistics of Ukraine)

Banking sector assets

Total assets of the National Bank of Ukraine in 2010 was valued at UAH 456.72 billion, while in 2009 assets were UAH 388.26 billion.

(Source: National Bank of Ukraine)

Consumer price index (CPI)

CPI in Ukraine has been steady since August 2010 ranging between 100 and 102.

(Source: National Bank of Ukraine, bank.gov.ua)

Industrial producer price index

In 2010, Industrial Producer Price Index in Ukraine was 101.4. 

(Source: National Bank of Ukraine, bank.gov.ua)

Interest rates

In line with recent trends, deposit-taking corporations reduced interest rates on deposits, and increased interest rates on loans allowing the spread between rates to increase, which in turn improved the institution’s profitability.

Period	Deposits			Loans
	Demand	Up to 1 year	Over 1 year and up to 2 years	Overdraft	Up to 1 year	Over 1 year and up to 5 years
2010	6.1	12.1	14.3	31.9	20.4	23.5
2009	5.2	14.8	15.9	27.7	19.7	21.8
2008	3.1	12.8	13.1	29.1	20.0	20.1
2007	2.5	10.0	11.7	18.2	17.8	14.8
2006	2.3	9.7	11.6	15.9	17.4	14.5
2005	2.8	10.9	12.5	15.5	19.2	15.5

(Source: National Bank of Ukraine)

Money supply

Ukraine has a 3-level money supply arrangement: M1, M2 and M3.

 

(Source: National Bank of Ukraine)

In 2010, annual growth rates for money supply indicators M1, M2 and M3 were 19.36%, 18.77% and 18.49% respectively.

Government expenditure

In 2010, Government expenditures in Ukraine amounted to UAH 377,873 million, increasing 18.65% as compared to 2009. This is due in part to the growth in expenditures on wages with bonus types, and an increase in capital expenditures.

(Source: National Bank of Ukraine)

(Source: National Bank of Ukraine)

Official exchange rates

Period	100 USD	100 GBP	100 EUR	100 AUD	1000 JPY	10 Russian Ruble	100 Polish Zloty
Jan-2011	794.00	1,264.46	1,088.57	791.63	96.54	2.68	277.97
2010	796.17	1,229.15	1,057.31	808.41	97.68	2.61	266.66
2009	798.50	1,266.47	1,144.89	713.95	86.50	2.64	277.56
2008	770.00	1,114.30	1,085.55	531.22	85.21	2.62	261.80
2007	505.00	1009.73	741.95	443.46	44.66	2.06	206.01
2006	505.00	990.45	665.09	398.47	42.38	1.92	173.61
2005	505.00	867.59	597.16	368.69	42.83	1.75	154.70

(Source: National Bank of Ukraine)

Government finances

Fiscal balance

The fiscal balance has continually increased from 2006 to 2010. In 2010, government deficit was UAH 64,836 million, increasing 42.54% over 2009. Furthermore, the deficit was about -4.1% of Gross Domestic Product in 2009.

 

(Source: National Bank of Ukraine)

Total revenue

In 2010, the government of Ukraine recorded a total revenue of UAH 314,391 million, increasing 136.16% over 2009. The overall increase in revenue was attributed to growing VAT revenues, and an increase in receipts in individual income tax and excise duties, which in turn was caused by a rise in the average wage per worker and a rise in excise tax.

(Source: National Bank on Ukraine)

(Source: National Bank of Ukraine)

Tax revenue

Tax revenues of Ukraine amounted to UAH 247.3 billion for the January to May 2010 period.

Tax Revenues for January – May 2010 (UAH Billion)
	Consolidated Budget	State Budget	Local Budget
Personal Income Tax	33.7	-	33.7
Corporate Income Tax	40.7	40.5	0.3
VAT	119	119	-
Excise Tax on Domestic Goods	25.6	25.3	0.3
Excise Tax on Imported Goods	4.4	4.4	-
Import Duty	8.3	8.3	-
Export Duty	0.4	0.4	-
Total Tax Revenue	247.3	203	44.3

(Source: Ministry of Finance)

Current account balance

The current account balance registered a deficit from 2006 to 2010 (till Q3), of which 2008 witnessed the highest current account deficit due to the rise in domestic demand, inflows of foreign direct investment and long term loans.

Till Q3 2010, current account deficit was USD 314 million.

(Source: National Bank of Ukraine)

(Source: National Bank of Ukraine)

Balance of payments

Balance of Payments (USD million)
	2010 (Till Q3)	2009
Exports of Goods and Services	49,321	54,253
Imports of Goods and Services	-50,433	-56,206
Income	-1,408	-2,440
Current transfers	2,206	2,661
Capital and financial account	-664	1,389
Direct investment	3,587	4,654
Portfolio investment	3,026	-1,559
Other investment	952	-7,955
Reserves Assets	-8,398	5,654
Net Errors and Omissions	978	343

(Source: National Bank of Ukraine)

In first nine months of 2010, the total labour force in the Ukraine was recorded at 22.17 million, whereas it was 22.15 million in 2009. (The reference age group is 15-70 years of age)

The labour force participation rate for January to September of 2010 was 64% of total population.  Furthermore, the total employment level in the first nine months of 2010 was 20.4 million.

(Source: Statistics of Ukraine)

Unemployment rate has decreased overall from 2000 to 2010. However, in 2009, the rate increased by 2.4 %.

(Source: Statistics of Ukraine)

Minimum wage

The average monthly wages in Ukraine increased steadily from 2001 to 2010. In 2010, the nominal average monthly wages was UAH 2,239, increasing 14.87% over 2009.

(Source: National Bank of Ukraine)

Level of unionisation

Major union federations in Ukraine are:

·         Federation of Trade Unions of Ukraine, comprising of 12 million members

·         The National Confederation of Trade Unions, with 3 million members and includes several independent trade unions

·         Free Trade Unions of Ukraine: includes 18 trade unions with 148,000 members. Sectors include mining, shipping, air transport and railways

(Source: fedee)

Ukraine is a sovereign, independent, democratic country. The government of Ukraine operates under a framework of a constitutional democracy, wherein the absolute power is vested in people.

The parliament in Ukraine is known as Verkhovna Rada, the sole body of legislative power in Ukraine.  It is comprised of 450 members elected on the basis of universal, equal and secret election for a term of five years.

(Source: Government Portal)

Some of political parties in the Verkhovna Rada are:

·         Ukrainian Social Democratic Party

·         Communist Party of Ukraine

·         Party of Regions

·         Party "Reforms and Order"

·         Ukrainian People's Party

·         Ukrainian Labour Party

(Source: Central Election Commission)

Regulatory environment

The country’s economic freedom score is 45.8, making the economy the 164^th freest in the Economic Freedom Index 2011. Its score declined by 0.6 points from the 2010 index. Furthermore, Ukraine is ranked last out of the 43 countries in the Europe region, and its overall score is lower than the world average.

(Source: heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. It ranks countries according to the perception of corruption in the public sector. Ukraine is ranked 134^th out of 178 countries covered on World’s Corruption Perception Index 2010, which indicates that the levels of corruption in public departments is relatively high.

CPI ranking of Ukraine improved from 146^th in 2009 to 134^th in 2010 with a score of 2.4 out of 10. This shows that the perceived levels of corruption have decreased in the country.

(Source: Transparency.org)

Freedom of information

World Press Freedom Index 2010 ranks Ukraine at 131^st position. The ranking of country fell drastically in the 2010 index

(Source: rsf.org)

The major newspapers in the country are:

·         Fakty i Kommentarii

·         Silski Visti

·         Vecherniye Vesti

·         Segodnya

·         Kyiv Post

·         Ukrayina Moloda

·         Zerkalo Nedeli

The National TV Company of Ukraine, Inter TV, STB, Novy Kanal, and ICTV are some of the broadcasters in Ukraine.

(Source: BBC)

Judicial system

The judicial system of Ukraine has two parts namely, the courts of general jurisdiction and the Constitutional Court of Ukraine.

The organisation and operation of the judicial system is governed by the Constitution of Ukraine and the laws on constitutional court of Ukraine. The courts of general jurisdiction form a unified system, futhermore, the creation of extraordinary and special courts is prohibited in Ukraine.

The judicial system in the Ukraine is independent of any improper influence. Everyone has the right to legal assistance and in cases provided by law, this assistance is provided free of charge.

The system of courts of general jurisdiction consists of:

·         Local courts

·         Appellate courts

·         High specialized courts

·         The Supreme Court of Ukraine

The Supreme Court of Ukraine is the highest judicial body of general jurisdiction and consists of twenty judges (five each from the following courts: jurisdiction civil, criminal, economic and administrative) from which President of Supreme Court of Ukraine and his deputy are elected.

(Source: Supreme Court)

In 2010, total resident population of Ukraine was recorded at 45.78 million,decreasing by about 0.39% from 2009. Females accounted for 53.9% of total population in 2010.

(Source: Statistics of Ukraine)

In 2010, population density was 76 people per sq. km. During 2004-2010, population witnessed a continuous decline due to higher death rates.

(Source: Statistics of Ukraine)

In 2010, the majority of the population, about 70.18%, were recorded in between 15 and 64 years of age and about 15.65% population were aged 64 or above. 

(Source: Statistics of Ukraine)

Birth and death rate

The crude birth rate during 2009 was 11.1 live births per 1,000, compared to 9 live births in 2004.

The average death rate was around 15.3 deaths per 1,000 during 2009. As a result of improvements in maternal and child health services, the country has recorded a decrease in the infant mortality rate from 10 per 1,000 live births in 2008, to 9.4 per 1,000 live births in 2009.

(Source: Statistics of Ukraine)

Average life expectancy

In 2009, the average life expectancy was 63.79 years for males and 74.86 years for females.

(Source: Statistics of Ukraine)

Infant mortality rate

In 2009, the country had an infant mortality rate of 9.4 deaths per 1,000 live births.

Year	Infant Mortality Rate   (per '000 live births)
2009	9.4
2008	10
2007	11
2006	9.8
2005	10
2004	9.5

(Source: Statistics of Ukraine)

Migration

In 2010, net migration in the Ukraine was recorded at 16,133, indicating that the number of immigrants was more than number of emigrants.

Year	Immigration	Emigration	Net Migration
2010	30,810	14,677	16,133
2009	32,917	19,470	13,447
2008	37,281	22,402	14,879
2007	46,507	29,669	16,838
2006	44,227	29,982	14,245
2005	39,580	34,997	4,583

(Source: Statistics of Ukraine)

Human development index (HDI)

The country is ranked 69^th on the HDI 2010, based on factors like life expectancy at birth, mean and expected years of schooling, gross national per capita income, etc.

(Source: HDR UNDP)

The literacy rate in Ukraine is estimated at 99.7% for 2010.

(Source: guardian.co.uk)

Educational resources

The education system in Ukraine is as follows:

·         Preschool and secondary education

·         Vocational education

·         Higher education

(Source: Ministry of Education)

(Source: Statistics of Ukraine)

(Source: Statistics of Ukraine)

Healthcare resources

The Ministry of Public Health of Ukraine (MPHU) is the leading body in public health, sanitary and the epidemiological well-being of the citizens.

(Source: Ministry of Health)

(Source: Statistics of Ukraine)

Mass public transport

People in Ukraine travel by railways, motor vehicles, water, aircraft, trams, trolleybuses and underground metro.

Different types of transportation routes include:

·         Railways including electrified tracks

·         Navigable river routes

·         Automobile roads

·         Trolley bus routes

·         Tram routes

·         Subways (double track railroads)

(Source: Statistics of Ukraine)

Ports

Ukraine has 18 ports namely: Port of Belgorod, Port of Kerch, Port of Reni, Port of Sevastopol, Port of Mariupol, Port of Odessa, Port of Yuzhny, Port of Oktyabrsk, Port of Izmail and others.

(Source: worldportsource)

Airports

(Source: aircraft-charter-world)

Telecommunications networks

As of January 2011, total mobile subscribers, Cable TV subscribers and internet subscribers were 53.93 million, 3.46 million and 3.66 million respectively. Additonally, in 2010, internet access in Ukraine increased at an annual growth rate of about 30.89%.

(Source: Statistics of Ukraine)

Public housing stock

In 2009, the total housing stock of the Ukraine was 1072.2 million sq. km. of total space, increasing 0.53% over 2008.

(Source: Statistics of Ukraine)