Ukraine became an independent state after the collapse of Soviet Union in 1991. Since that time the country has passed through a process of significant political, economic, and social change. Having experienced difficult economic times during 1991-1995 (the break down of integrated connections with the post-Soviet business environment, hyperinflation, privatization issues, and national business system formation), the Ukrainian government successfully established a national currency (hryvna) and overcame high inflation by the late 1990s
Considering the economic development of Ukraine in the past decade, selected macroeconomic indicators show the national economy performance outcomes during this transitional process. For instance, GDP showed a positive dynamic starting from 2000 (5.58% annual change) until 2009 when the GDP dropped by 15.1% which was a direct consequence of the world financial crisis. Inflation in Ukraine remains relatively high (10-20 percent increase annually with the lowest level in 2002 (0.7%) and the highest ones in 2000 (28.2%) and 2008 (25.2%). The value of the current account balance had a surplus during 1999-2005 period with the highest value in 2004 (6.9 billion US dollars) and a deficit during 2006-2009 with the lowest value in 2008 (12.8 billion US dollars). Economic instability has a direct impact on demography. The population has been steadily declining every year, dropping from 52 million people in 1992 to 45.7 million in 2009 1.
Though the market system is being formed, the transformation process is not complete yet. Being in the transition stage of its development, Ukraine experiences problems connected with institutional framework development which cause political and economic instability. One of the consequences of weak institutional governance is a significant informal sector widely used by Ukrainian citizens to earn additional income. 2. The failure to build strong democratic institutions has also impacted the country's economic performance 3. And, in spite of its large rich agricultural resources, and favorable location at the intersection of Western Europe and Asia, Ukraine has not yet reached the desired and expected economic progress due in part to its dependence on Russian natural gas and oil, ongoing political instability, and the world economic crisis.
Economic Development of the Ukraine:
A Guide to Selected Information Sources
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Economy & Business
Foreign Trade & Investment
Banking & Finance
Industry & Agriculture
Labor Market & Management
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Building of the National Bank of Ukraine - Author: Alexander Noskin - Date: 8-15-2005.
From the Wikipedia Commons
1. World Economic Outlook Database, April 2010. International Monetary Fund.
2.Williams, C., & Round, J. (2009). Out of The Margins: Re-Theorizing The Role Of The Informal Economy In Ukraine. International Journal of Economic Perspectives, 3(1), 45-58. Retrieved July 13, 2010, from ABI/INFORM Global. (Document ID: 1826391441).
3.. Jonavicius, L. (2009). Why Ukraine and Georgia Have Not Used The "Window of Opportunity"? Neo-Institutional Analysis of Transformational Stagnation In Georgia and Ukraine. UNISCI Discussion Papers, (19), 12-37. Retrieved July 13, 2010, from Research Library. (Document ID: 1934688271).