Economy

Ukraine was the second-ranking Soviet republic in industrial and agricultural production, after Russia. Long known as the "breadbasket of Europe", Ukraine traditionally had a highly developed agricultural sector because of its vast, fertile lands. Because of Soviet development, which emphasized heavy industry, Ukraine possesses one of the most industrialized economies of Europe. However, its industries are highly inefficient and in pressing need of modernization.

The collapse of the Soviet economy in 1990-91 and a subsequent period of extreme currency inflation in Ukraine brought great hardship to most of the population. Despite early hopes that Ukrainian economic independence, would alleviate the declining economy and standard of living, Ukraine entered a period of severe economic decline. Daily life in Ukraine became a struggle, particularly for those living on fixed incomes, as prices rose sharply. Citizens have compensated in a number of ways: more than half grow their own food, workers often hold two or three jobs, and many acquire basic necessities through a flourishing barter economy.

Ukraine's dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Now in his second term, President KUCHMA has pledged to reduce the number of government agencies and streamline the regulation process, create a legal environment to encourage entrepreneurs and protect ownership rights, and enact a comprehensive tax overhaul.

Reforms in the more politically sensitive areas of structural reform and land privatization are still lagging.

Unemployment rate in Ukraine is 3.6% officially registered; large number of unregistered or underemployed workers.

• Population below poverty line: 29% (2001 est.)
• Industries: coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food processing (especially sugar)
• Electricity - production by source:
  fossil fuel: 49.54%
  hydro: 7.02%
  other: 0.01% (2000)
  nuclear: 43.44%
• Imports - partners: Russia 36.9%, Turkmenistan 10.5%, Germany 8.7%, US (2001 est.)
• Debt - external: $11.8 billion (2001)
• Currency: hryvnia
• Currency code: UAH -------
• Exchange rates: hryvnia per US dollar -5.3126 (2002), 5.3722 (2001), 5.4402 (2000), 4.1304 (1999), 2.4495 (1998), 1.8617 (1997)
  To find out current exchange rate click on

  ---