page_title: Ukraine
section_title: Economy
hierarchical_section_title: Ukraine / Economy
caption_attribution_description: English: National Bank of Ukraine new
context_page_description: Ukraine is a country in Eastern Europe. It is bordered by Russia to the east and north-east; Belarus to the north; Poland, Slovakia and Hungary to the west; and Romania, Moldova, and the Black Sea to the south. Ukraine also borders the Crimean Peninsula to its south, which Russia annexed from Ukraine in 2014, though Ukraine still continues to claim the territory. Including the Crimean Peninsula, Ukraine has an area of 603,628 km², making it the second-largest country by area in Europe after Russia, and the 46th-largest country in the world. Excluding Crimea, Ukraine has a population of about 42 million, making it the eighth or ninth-most populous country in Europe, and the 32nd-most populous country in the world. Its capital and largest city is Kiev. Ukrainian is the official language and its alphabet is Cyrillic. The dominant religion in the country is Eastern Orthodoxy.
  The territory of modern Ukraine has been inhabited since 32,000 BC. During the Middle Ages, the area was a key centre of East Slavic culture, with the powerful state of Kievan Rus' forming the basis of Ukrainian identity.
context_section_description: In Soviet times, the economy of Ukraine was the second largest in the Soviet Union, being an important industrial and agricultural component of the country's planned economy. With the dissolution of the Soviet system, the country moved from a planned economy to a market economy. The transition was difficult for the majority of the population which plunged into poverty. Ukraine's economy contracted severely in the years after the Soviet dissolution. Day-to-day life for the average person living in Ukraine was a struggle. A significant number of citizens in rural Ukraine survived by growing their own food, often working two or more jobs and buying the basic necessities through the barter economy.
  In 1991, the government liberalised most prices to combat widespread product shortages, and was successful in overcoming the problem. At the same time, the government continued to subsidise state-run industries and agriculture by uncovered monetary emission. The loose monetary policies of the early 1990s pushed inflation to hyperinflationary levels. For the year 1993, Ukraine holds the world record for inflation in one calendar year. Those living on fixed incomes suffered the most. Prices stabilised only after the introduction of new currency, the hryvnia, in 1996. The country was also slow in implementing structural reforms. Following independence, the government formed a legal framework for privatisation. However, widespread resistance to reforms within the government and from a significant part of the population soon stalled the reform efforts. Many state-owned enterprises were exempt from privatisation.
  In the meantime, by 1999, the GDP had fallen to less than 40% of the 1991 level. It recovered considerably in the following years.  Ukraine was hit by the economic crisis of 2008 and in November 2008, the IMF approved a stand-by loan of $16.5 billion for the country.
  In 2019 the average nominal salary in Ukraine reached 10,000  hryvnias per month or around €300, while in 2018, Ukraine's median wealth per adult was $40. In 2017, Ukraine's government debt was 75%.
  Ukraine produces nearly all types of transportation vehicles and spacecraft. Antonov airplanes and KrAZ trucks are exported to many countries. The majority of Ukrainian exports are marketed to the European Union and CIS. Since independence, Ukraine has maintained its own space agency, the National Space Agency of Ukraine (NSAU). Ukraine became an active participant in scientific space exploration and remote sensing missions. Between 1991 and 2007, Ukraine has launched six self made satellites and 101 launch vehicles, and continues to design spacecraft.
  The country imports most energy supplies, especially oil and natural gas and, to a large extent, depends on Russia as its energy supplier. While 25% of the natural gas in Ukraine comes from internal sources, about 35% comes from Russia and the remaining 40% from Central Asia through transit routes that Russia controls. At the same time, 85% of the Russian gas is delivered to Western Europe through Ukraine.
  Growing sectors of the Ukrainian economy include the information technology (IT) market. In 2013, Ukraine ranked fourth in the world in number of certified IT professionals after the United States, India and Russia.
  Ukraine's 2010 GDP, as calculated by the World Bank, was around $136 billion, 2011 GDP – around $163 billion, 2012 – $176.6 billion, 2013 – $177.4 billion. In 2014 and 2015, the Ukrainian currency was the world's worst performing currency, having dropped 80 percent of its value since April 2014 since the War in Donbass and the annexation of Crimea by Russia.
  The World Bank classifies Ukraine as a middle-income state. Significant issues include underdeveloped infrastructure and transportation, corruption and bureaucracy. The public will to fight against corrupt officials and business elites culminated in a strong wave of public demonstrations against the Victor Yanukovych's regime in November 2013. According to Transparency International's Corruption Perceptions Index, Ukraine was ranked 120th with a score of
caption: The National Bank of Ukraine
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