The economy of Ukraine is an emerging free market economy. In April 2020, the World Bank reported that economic growth was solid at 3.2 percent in 2019, led by a good agricultural harvest and sectors dependent on domestic consumption. Household consumption grew by 11.9 percent in 2019, supported by sizable remittance inflows and a resumption of consumer lending, while domestic trade and agriculture grew by 3.4 and 1.3 percent, respectively.
The following tables and chart will tell the change details in last 5-10 years:
Ukraine Distribution of workforce from the last 5 years:
Ukraine Distribution of GDP across economic sectors:
Here attached the last 10 years chart of Ukraine GDP: (amount in billion USD):
3 Sectors of the Economy – Agriculture, Industry and Services:
Agriculture is an important part in the Ukraine’s economy. It employs almost 5.76% of the total workforce and contributed almost 3.45% in GDP.
Demand for agricultural machinery is directly tied to the health of Ukraine’s agribusiness sector, which remains the most promising sector of the economy. With 41.5 million hectares of agricultural land covering 70 percent of the country, agriculture is Ukraine’s largest export industry.
Crop farming, which accounts for 73 percent of agricultural output, dominates Ukrainian agriculture. Leading this sector is grain production. Ukraine’s major grains crops are wheat, corn, barley, and rye. Ukraine is the fourth largest exporter of corn and barley, and the sixth largest exporter of wheat.
Major products in this Sector:
Wheat: Ukraine is the sixth largest exporter of wheat in the world. In 2019, wheat exports for Ukraine were 3.11 million thousand US dollars. Though Ukraine wheat exports fluctuated substantially in recent years, it tended to increase through 2000 – 2019 period ending at 3.11 million thousand US dollars in 2019. Ukraine’s wheat crop is expected to reach a record 28.6 million tons in 2021.
Corn: Ukraine is the fourth largest exporter of corn in the world. In 2019 Ukraine harvested nearly 36 million tons of corn out of which it exported almost 28.9 million tons in the same year. Corn production in the 2021-22 marketing year is forecast to total 39.5 million tons, a 19% production jump compared to the 2020-21 marketing year. Exports of the commodity are set to rise in the 2021-22 marketing year to 32.5 million tons, a 15% increase over the previous year of 24 million tons.
Barley: Ukraine is the fourth largest exporter of barley in the world. In 2020, barley production for Ukraine was 7,947 thousand tons. Though Ukraine barley production fluctuated substantially in recent years, it tended to decrease through 2001 – 2020 period ending at 7,947 thousand tons in 2020. China became the largest importer of Ukrainian barley in 2020-21, having put the lid on long-standing dominance of Saudi Arabia in Ukraine’s export barley market, with the Middle Eastern country having shifted to purchases of Russian and Australian supplies.
Agriculture Subsidy in Ukraine:
Producer support in Ukraine, as measured by the PSE, has been volatile over the past three decades, mostly due to fluctuations in market price support (MPS). Since 1992, MPS has been negative in most years, reflecting average producer prices below international reference levels, but with significant variation across commodities and time.
Budgetary support in the form of tax benefits and input support continues to be relatively small, but has contributed to the positive overall producer support in the last two years. Support for general services has increased since 2015 but remains low compared to other countries. In 2019, the GSSE averaged 1.7% of agricultural value-added, well below levels seen in the mid-1990s. Most of these expenditures go to inspection and control services and to agricultural schools.
Industry is an important part in the Ukraine’s economy. It accounts for 32.17% of GDP and employed almost 26.68% of the workforce.
Major Industries in this Sector:
Mining and production: Ukraine is one of the world’s most important mineral producing countries, in terms of both the range and size of its reserves. There are nearly 8,000 separate deposits, harboring some 90 different minerals, of which about 20 are economically significant. In 2019, the country was the 7th largest world producer of iron ore, the world’s 8th largest producer of manganese, 6th largest producer of titanium, and 7th largest producer worldwide of graphite. It contributed almost 27.7% of total Ukraine export which was USD $12.7 billion.
Chemical: Chemical industry is one of the principal sectors of Ukraine’s economy. In 2019 Ukrainian chemical industry output reached $2.8 billion with CAGR 8% in the past 4 years. At the same time Ukraine is heavily dependent on imports of chemical produce, including petrochemicals, pharmaceuticals, mineral fertilizers. In 2019, Ukraine imported $7.5 billion of chemical produce, which accounts for 12 percent share in the country’s import, showing strong demand from the domestic market.
Service sector is an important part in the Ukraine’s economy. It contributes almost 54.03% in the GDP and employed almost 67.57% of the total Ukraine’s workforce.
Major Industries in this Sector:
Finance: Ukraine has two tier bank industry consists of the centra bank- the National Bank of Ukraine and commercial banks. Ukraine’s banking sector posted a cumulative profit of $2.4 billion in 2019 (60 billion hryvnias), breaking a historic record just several years after a major cleanup of the sector. The starkest turnaround happened with PrivatBank; Ukraine’s largest. It was nationalized in 2016 after reporting a capital shortage of $5.6 billion, and consequently bailed out by the taxpayers. In 2019, it posted the biggest profit among all banks, about $1.5 billion (32 billion hryvnias).
Tourism: Tourism accounts for only 1.4% of Ukrainian GDP, which reflects massive tourism and economic potential. In 2019, an average of $526 receipt was obtained from more than 14 million foreigners visiting Ukraine. It contributed USD S1261 million in GDP. It employs almost 1.3% of the total Ukraine’s workforce.
Information Technology: Ukraine has a long-standing reputation as a major technology region, with a well-developed scientific and educational base. In 2019 the number of IT specialists involved in the IT industry of Ukraine reached 172,000 people. The share of IT industry in Ukraine’s GDP is 4%. Ukraine is the largest exporter of IT services in Europe and ranks among the 25 most attractive countries for software development worldwide.
Top Companies in Ukraine: (according to revenue)
|4||Southern Mining and Processing Plant||Mining|