Ukraine Economy & Society

By | January 27, 2021

Ukraine Economy & Development

Ukraine Economy & Development

Estimated GDP: US $ 142.25 billion (2020)

Income per capita: 3659 US $ (2019)

Human Development Rank (HDI): Rank 88 of 189 (2019)

Share of poverty (less than US $ 3.2 / day): 0.40% (2018)

Distribution of income (Gini coefficient): 26.1 (2018)

Economic Transformation Index (BTI): Rank 30 of 137 (2020)

Foreign trade, trade balance

Up until 2014, Ukraine’s foreign trade was based on the principle of a pendulum policy: efforts were made to gain access to the European market and to intensify trade relations with the CIS countries.

According to computergees, Ukraine is a country located in Eastern Europe. Ukraine’s trade was shaped by its energy dependency on Russia, by economic relations from the Soviet era and by a market dominated by oligarchs. In the 2000’s, trade with Russia intensified, increasing by 40%. In 2005 exports to the Russian Federation were USD 8 billion, in 2007 they were USD 13 billion. In 2010 Russia became Ukraine’s largest trading partner, with around 26% of all exports going to the neighboring country. However, due to many political crises and the pressure from Russia on political decisions in Ukraine, trade stagnated in the following period. Since Ukraine joined the WTO in 2008, trade with European countries has gradually improved. In 2013/14, Ukraine’s trading strength collapsed due to the crisis. In 2014 and 2015, GDP fell by approx. 18% and foreign trade by around a third. The hryvnia lost purchasing power and the inflation was 48.6%.

Due to the crisis with Russia, foreign trade had to reorient itself and the importance of the EU as a trading partner continued to grow. Most of the export products come from metallurgy, agriculture, food industry and mechanical engineering, with the export figures of metallurgical and mechanical engineering products declining due to the difficult relationship with Russia. The food industry and agriculture, on the other hand, show an upward trend because demand from Europe is also growing. The foreign trade turnover with the EU rose from approx. USD 11 billion in 2002 to USD 30 billion in 2016 (excluding the annexed Crimea and the occupied eastern territories).

Ukraine Society

Proportion of literate adults: 99.8% (2017)

Major religions: Orthodoxy, Catholicism, Judaism, Islam

Urban population: 69.5% (2019)

Life expectancy (male / female): 67.7 years / 77.4 years (2018)

Gender Inequality Index: Rank 84 (2018)

Number of births: 1.55 / woman (2018)

Infant mortality: 7.7 / 1000 (2018)

EURO 2012

Between June 8 and July 1, 2012, the European Football Championship took place in Poland and the Ukraine. The two countries were awarded the contract by UEFA in 2007 and prevailed against rivals Italy and Croatia / Hungary. Poland and Ukraine would like to present themselves as modern countries and, above all, promised an image gain. In Poland and Ukraine four cities each were placed in host the Games. In Poland, the venues were in Warsaw, Poznan, Danzig and Wroclaw. In Ukraine, the games were played in Kyїv, Doneck, Harkiv and Lviv.

The preparations for the tournament are not without difficulties run. Poland and Ukraine received warnings from UEFA for delays in building stadiums. Due to the interference of the Ukrainian government in the affairs of the football association, Ukraine has also been threatened with sanctions by the world association Fifa.

EURO 2012

A major problem in Ukraine was the massive corruption in connection with EURO 2012. For example, the EURO 2012 staging in Ukraine cost 11.5 billion euros instead of the planned 3 billion euros, half of which should be borne by the Ukrainian taxpayer. The renovation of the Olympic Stadium in the Ukrainian capital alone cost 585 million euros, while the Berlin Olympic Stadium cost “only” 242 million euros. The still largely lacking infrastructure was also criticized: unfinished streets, too few accommodations in the middle and lower price segments for football fans, safety deficiencies in the stadiums.

The government of Ukraine came under heavy criticism due to the so-called “dog scandal”. In order to improve the cityscape, the authorities ordered the targeted killing of around 250,000 stray dogs. After numerous protests by animal welfare organizations, the killing was prohibited by law.