Investment Report for Ukraine
Economic forecast for Ukraine
The Ukrainian economy has grown at a robust rate over the past few years. The Ukraine is blessed with vast natural resources as well as a strategic location between Western Europe, Russia and the Middle East. Ukraine is the second largest country in Europe. Larger than France and Germany. Ukraine has over 1,700 miles (2,782 km) of warm water coastline along with some of the richest farmlands in the world.
Currently a large discrepancy exists between
Ukraine's direct foreign investment and its overall economic
potential. Poland received 20 times the direct foreign investment
of Ukraine for 2004. This is remarkable considering that Poland
is less than 1/2 the size of Ukraine with far fewer natural
resources at its disposal and no warm water ports or beach
resorts. Below is a chart comparing Poland's average real
GDP growth over the past 12 years to that of France, Germany,
Japan, the United Kingdom and the United States. The current
state of the Ukrainian economy is similar to that of Poland's
12 years ago. If Ukraine's economic perform can match that
of its smaller neighbor then we can expect to see similar
GDP growth rates.
The chart below illustrates how the Ukrainian
economic rate of growth has out paced that of France, Germany,
Japan, Poland, the United Kingdom and the U.S. over the last
5 years. With forecasted events such Ukraine's acceptance
into the WTO, NATO and the EU still on the horizon, Ukraine's
economy should be able to sustain a healthy rate of growth
for the foreseeable future.