Discusses key economic indicators and trade statistics, which countries are dominant in the market, the U.S. market share, the political situation if relevant, the top reasons why U.S. companies should consider exporting to this country, and other issues that affect trade, e.g., terrorism, currency devaluations, trade agreements.
Last Published: 8/6/2019
Ukraine’s economy is recovering from a deep slump. Following a political and economic crisis in 2014-2015 and cumulative economic decline of 16 percent, Ukraine’s economy began slowly growing in 2016 with two percent year-over-year growth. While the country’s turn-around was primarily attributable to reforms implemented by Ukraine’s first technocratic government, growth in 2016 was driven by a rebound in domestic investment activity and a modest recovery in household consumption. Domestic demand continued to fuel economic growth of 2.5 percent in 2017 and 3.3 percent in 2018.

Ukraine’s global trade continued to grow in 2018, but imports significantly outpaced exports, resulting in Ukraine’s trade deficit nearly tripling to $3.8 billion.  Ukraine’s trade balance surplus in services increased by approximately 19 percent to $6.1 billion in 2018, reflecting Ukraine’s growing role as an information technology (IT) leader.  Goods exported from Ukraine increased by 9 percent in 2018.

Despite its low economic growth and growing trade deficit, Ukraine’s economy has several bright spots, most notably agriculture, which grew 7.8 percent year-over-year in 2018.  Last year Ukraine harvested 70 million tons and exported 50.4 million tons of grain, which was the country’s record high.  Ukraine ranks among the world’s top producers of grain crops including wheat, corn, and barley.  In 2016, Ukraine’s sugar exports also reached a 15-year high.  Barring weather issues, 2019 harvests will likely set new records, and agriculture will continue to support the economy. Stable agricultural growth presents significant opportunities for U.S. exporters of agricultural machinery, as well as other inputs like seeds and fertilizers.

Ukraine’s economy is recovering from a deep slump. Following a political and economic crisis in 2014-2015 and cumulative economic decline of 16 percent, Ukraine’s economy began slowly growing in 2016 with two percent year-over-year growth. While the country’s turn-around was primarily attributable to reforms implemented by Ukraine’s first technocratic government, growth in 2016 was driven by a rebound in domestic investment activity and a modest recovery in household consumption. Domestic demand continued to fuel economic growth of 2.5 percent in 2017 and 3.3 percent in 2018. 

Ukraine’s global trade continued to grow in 2018, but imports significantly outpaced exports, resulting in Ukraine’s trade deficit nearly tripling to $3.8 billion.  Ukraine’s trade balance surplus in services increased by approximately 19 percent to $6.1 billion in 2018, reflecting Ukraine’s growing role as an information technology (IT) leader.  Goods exported from Ukraine increased by 9 percent in 2018.

Despite its low economic growth and growing trade deficit, Ukraine’s economy has several bright spots, most notably agriculture, which grew 7.8 percent year-over-year in 2018.  Last year Ukraine harvested 70 million tons and exported 50.4 million tons of grain, which was the country’s record high.  Ukraine ranks among the world’s top producers of grain crops including wheat, corn, and barley.  In 2016, Ukraine’s sugar exports also reached a 15-year high.  Barring weather issues, 2019 harvests will likely set new records, and agriculture will continue to support the economy. Stable agricultural growth presents significant opportunities for U.S. exporters of agricultural machinery, as well as other inputs like seeds and fertilizers.

Ukraine’s recent economic recovery and macroeconomic stabilization are supported heavily by the International Monetary Fund (IMF). Ukraine received $1.4 billion of the first tranche from the International Monetary Fund (IMF) under a new Stand-By Arrangement (SBA) program for Ukraine, approved by the IMF Board of Directors on December 18, 2018. Due this receipt, Ukraine’s international reserves grew to $20.1 billion as of December 21, 2018. Future IMF assistance will depend on additional reforms, including pension reform, land reform, and additional steps to fight corruption. According to the IMF, per capita GDP in Ukraine is still very low—just 20 percent of the EU average and the second lowest level of all Central and Eastern European countries. Faster, sustainable, and inclusive growth is needed to recover lost ground and improve living standards.

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Ukraine Trade Development and Promotion