Economic Achievements: Stable Growth Continues
- Ukraine's GDP grew 6.6% in 2006, compared to 2.6% in 2005. The economy proved stable despite the shock of rising prices for imported gas at the start of the year.
- Inflation was at 12%.
- The US granted Ukraine market economy status.
- The US Senate revoked the Jackson-Vanik Amendment for Ukraine.
- All necessary bills for WTO accession were passed by the Parliament of Ukraine.
- National Bank's international reserves increased by 14.75%.
- The nominal salary of Ukrainian citizens increased by 29.2%.
- Consumer spending continued its increase, close to 33%, similar to 2005 levels.
Socio-Political Situation
- March 2006 Parliamentary elections were judged by international observers to be free and fair.
- Ukraine received a better ranking in Transparency International's Corruption Perception Index, moving up to 107th position out of 159 countries.
- Relations with Russia improved.
- Civil and political freedoms are developing.
- Independent press and no government censorship.
FDI Increasing
- FDI from the US, UK, Germany, the Netherlands and Russia increased.
- Since independence in 1991, Ukraine has attracted $19.4 billion in FDI.
- The financial services sector has been the biggest FDI magnet in 2006, while the consumer market has also attracted strong interest.
- Traditionally strong industry sectors include food processing, machine engineering, transport and telecoms.
- FDI per capita is $419.
| Indicators | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 |
|---|---|---|---|---|---|---|
| Real GDP Growth, % | 9.2 | 5.2 | 9.6 | 12.1 | 2.6 | 6.6 |
| Average Inflation, % | 6.1 | -0.6 | 8.2 | 12.3 | 10.3 | 11.6 |
| Exchange Rate, USD | 5.37 | 5.33 | 5.33 | 5.32 | 5.05 | 5.05 |
| Current Account Balance, % of GDP | 3.7 | 7.5 | 5.8 | 10.5 | 3.1 | -1.1 |
| Foreign Debt Stock (USD billions) | 20.4 | 21.6 | 23.8 | 30.6 | 38.8 | 44.9 |
| FDI (USD billions, net) | 0.7 | 0.7 | 1.4 | 1.7 | 7.3 | 4.5 |
| Sources: ICPS, NBU |
