Month-long street protests in Kiev led to a change in government in March 2014, followed by loss of control of Crimea and the beginning of military conflict in Ukraine’s eastern regions, which resulted in casualties, significant damage to infrastructure and considerable economic loss. Due to factors such as insufficient capital investment, lower steel demand, high energy import prices, a lack of structural reforms, and corruption, the economy never recovered from the 2009 crisis. Ukraine entered another recession in mid-2012, with GDP growth falling to 0% in 2013, ‑6.8% in 2014 and ‑9.9% in 2015. ![]() Ukraine’s real GDP recovered 4.2% in 2010 and a further 5.2% in 2011. A total of approximately USD 11 billion was released by the IMF under the arrangement, as well as USD 3.4 billion under a second SBA in mid-2010. The International Monetary Fund (IMF) offered support and agreed to a USD 16.4-billion Stand-By Arrangement (SBA) in November 2008 to stabilise the banking system and mitigate the impact of Ukraine’s collapse in output. Because of its exposure to foreign markets, Ukraine has been severely affected by the global economic and financial crises that began in autumn 2008: its economy fell into deep recession in 2009, with real GDP down 14.8% and industrial output plummeting almost 22%. Variations in the UAH–USD exchange rate, access to export markets, closure of Russia’s market, external construction activity in Asia and the Middle East, agriculture, and energy supply and price trends have a substantial impact on its domestic economy.ĭespite strong growth up to 2007, Ukraine underwent two severe economic crises between 20. Ukraine remains heavily reliant on oil product and gas imports. Total exports to Commonwealth of Independent States (CIS) countries also declined in 2019, to 17.4% ( ). As its key trade partner, the European Union received 37.1% of total exports in 2019, whereas Russia accounted for only 10%, a dramatic decrease from 29% in 2013. Machinery and manufacturing’s share in total exports decreased in 2014‑19 mainly due to trade restrictions imposed by Russia in 2013‑15. The share of steel and non-ferrous metals in total exports declined about twofold in recent years, to 21.7% in 2019, but the share of agricultural and food industry products reached 48% according to National Bank of Ukraine statistics. After sharp currency devaluation in 2014-15, per-capita GDP declined in 2018 to USD 3 095 (in 2018 USD) according to the World Bank. Nominal gross domestic product (GDP) was UAH 3 559 billion in 2018 (USD 130.8 billion in 2018 USD). Ukraine’s economy remained open and export-oriented, and it joined the World Trade Organization in 2008. Ukraine experienced a long period of very strong economic growth in 2000-07, owing to low gas prices, a strong national currency (the hryvnia ) and high foreign steel demand and prices. It is also the country that transits the most natural gas in the world, playing a key role in delivering Russian gas to European markets. With its considerable population and high energy consumption, it is one of Europe’s largest energy markets. Located at the crossroads of the European Union, the Russian Federation (Russia), and the Black Sea and Caspian regions, Ukraine has abundant mineral resources including oil, natural gas and coal, and great hydro and biomass potential. Russia’s illegal annexation of the Crimean Peninsula and second invasion continue to damage Ukraine’s economy, which relies heavily on the production of wheat and exports of industrial and energy products.Ukraine has a population of 41.9 million 1 and at 603 549 square kilometres (km 2) is the second-largest country in Europe by area. Political newcomer Volodymyr Zelenskyy won the April 2019 presidential election, and his party won an absolute majority in July 2019 parliamentary elections. Russia has burned much of Ukraine’s grain supply, causing a global food crisis. Its business and political networks have been transformed by Russia’s second invasion, which began in February 2022. Long known as the “Breadbasket of Europe,” Ukraine is located in Eastern Europe north of the Black Sea.
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