Ukraine
Ukraine is an emerging market at the crossroads of Eastern Europe, Russia, Central Asia, and the Middle East, and holds great potential as a new market for U.S. trade and investment. Despite this promise, serious investment obstacles exist. Since achieving independence in August 1991, Ukraine has followed a course of slow economic reform and integration with the West. While Ukraine has achieved significant progress, particularly in the last few years, a tremendous amount of work still lies ahead. The country's resources and economic strengths include rich agricultural land, a strong scientific establishment, an educated, skilled workforce and significant coal and moderate oil and gas reserves. Despite such assets, Ukraine ranks among the poorest countries in Europe. Basic prerequisites for sustained economic growth such as adherence to the rule of law and respect for private property remain uneven. Until these basic weaknesses are addressed, and a strong, independent judiciary is established to support and protect them, Ukraine is unlikely to attract the volume of foreign or domestic investment that the country needs to raise living standards.
After suffering a decade of annual economic declines, Ukraine's economy grew by 6 percent in 2000, and 9 percent in 2001. The pace of growth slowed in 2002, with year-on-year growth in the first half of the year at about 4.3%, and forecasted to be 4.1% by year's end. Ukraine's GNP for 2001 was US$35.5 billion. Exports were US$19.8 billion, and imports were US$16.9billion. Inflation dropped to 1.8% in the first six months of 2002. The national currency, the hryvnia, has remained stable, and even appreciated slightly in 2002, fueled in part by the downturn of the dollar in relation to the euro along with increased demand for money due to economic growth. Ukraine's external economic situation has been stable due to a trade surplus and growth in foreign currency reserves, but this trend is likely to slow or reverse itself in 2003 with an increase in domestic and foreign debt.
Taken from the report by export.gov
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