Diplomatic representation from the US: chief of mission: Ambassador Carlos E. PASCUAL embassy: 10 Yurii Kotsiubynskyi Street, Kiev 01901 mailing address: 5850 Kiev Place, Washington, DC 20521-5850 telephone: [380] (44) 490-4000 FAX: [380] (44) 244-7350
Flag description:
two equal horizontal bands of azure (top) and golden yellow
represent grainfields under a blue sky
Economy Ukraine
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 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. 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. 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 of 4.1% in 2002 was more
moderate, in part a reflection of faltering growth in the developed
world. In general, growth has been undergirded by strong domestic
demand, low inflation, and solid consumer and investor confidence.
Growth was a sturdy 6% in 2003 despite a loss of mementum in needed
economic reforms.
GDP:
purchasing power parity - $218 billion (2002 est.)
GDP - real growth rate:
4.8% (2002 est.)
GDP - per capita:
purchasing power parity - $4,500 (2002 est.)
GDP - composition by sector: agriculture: 23% industry: 42% services: 35% (2001 est.)
Population below poverty line: 29% (2001 est.)
Household income or consumption by percentage share: lowest 10%: 3.7% highest 10%: 23.2% (1999)