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 late 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% 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 and have threatened to withdraw financial support. 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 was undergirded by strong domestic demand and growing consumer and investor confidence.

GDP purchasing power parity - $205 billion (2001 est.)

GDP - real growth rate 9% (2001 est.)

GDP - per capita purchasing power parity - $4,200 (2001 est.)

GDP - composition by sector
agriculture: 13%
industry: 40%
services: 47% (2000 est.)

Population below poverty line 29% (2001 est.)

Household income or consumption by percentage share
lowest 10%: 3.7%
highest 10%: 23.2% (1999)

Distribution of family income - Gini index 30 (1999)

Inflation rate (consumer prices) 12% (2001 est.)

Labor force 22.8 million (yearend 1997)

Labor force - by occupation industry 32%, agriculture 24%, services 44% (1996)

Unemployment rate 3.6% officially registered; large number of unregistered or underemployed workers (November 2001)

Budget
revenues: $10.2 billion
expenditures: $11.1 billion, including capital expenditures of $NA (2002 est.)

Industries coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food processing (especially sugar)

Industrial production growth rate 14.2% (2001 est.)

Electricity - production 163.57 billion kWh (2000)

Electricity - production by source
fossil fuel: 49.54%
hydro: 7.02%
other: 0.01% (2000)
nuclear: 43.44%

Electricity - consumption 151.72 billion kWh (2000)

Electricity - exports 400 million kWh (2000)

Electricity - imports 0 kWh (2000)

Agriculture - products grain, sugar beets, sunflower seeds, vegetables; beef, milk

Exports $17.3 billion (2001 est.)

Exports - commodities ferrous and nonferrous metals, fuel and petroleum products, machinery and transport equipment, food products

Exports - partners Russia 22.6%, Turkey 6.2%, Italy 5.1%, Germany (2001 est.)

Imports $17.1 billion (2001 est.)

Imports - commodities energy, machinery and parts, transportation equipment, chemicals

Imports - partners Russia 36.9%, Turkmenistan 10.5%, Germany 8.7%, US (2001 est.)

Debt - external $11.8 billion (2001)

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 - 5.3126 (January 2002), 5.3722 (2001), 5.4402 (2000), 4.1304 (1999), 2.4495 (1998), 1.8617 (1997)

Fiscal year calendar year

NOTE: The information regarding Ukraine on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Ukraine Economy 2002 information contained here. All suggestions for corrections of any errors about Ukraine Economy 2002 should be addressed to the CIA.