The economy of Ukrainbe

Ukraine economy can be classified as developed economy, given its overall level of industrial and agricultural output. However, the economy of Ukraine suffered because of various weaknesses deriving from overcentralized command economy during Soviet period.

For the last years Ukraine is moving to market economy, where the forces of supply and demand and private ownership guide the allocation of resources. The transition to market economy is politically and socially difficult because of rising inflation, unemployment, and economic uncertainty before it experiences the long-term benefits of market economy.

Ukraine mineral resources have played an important role in supporting Ukraine industrial development and in providing for its energy needs. Ukraine has an abundance of iron ore, coal, manganese, natural gas, oil, salt, sulfur, graphite, titanium, magnesium, kaolin, nickel, mercury, timber, arable land

Ukraine has well developed industries such as:

1. energy industry

• heavy and mechanical engineering

• motor industry

1. coal-mining industry

2. iron and steels industries

3. defense industry (military-industrial complex)

4. chemical and petrochemical industry

5. food industry

6. light industry

The energy sector is of key importance for the national economic development, as both production and municipal facilities require electric power for their operation. Three types of generation facilities are operated in Ukraine, including: thermal power plants, hydroelectric plants and nuclear power plants.

In the coal-mining industry, more than 300 mines are operating today in the country’s three coal-mining regions.

Ukraine’s iron and steel industries are very important segments in the economy. Among the 80 top steelmakers in the world, 5 are Ukrainian. Almost 75 % of steel production in Ukraine is exported from these companies: KryvorizhStal, AzovStal and ZaporizhStal.

The heavy and mechanical engineering sector includes enterprises involved in metals, oil, chemical, mining, power generating, railway stock (locomotives, passenger cars, tank-cars, and so on), road construction and vehicles (ships, aircraft, cars, urban transport), machinery and equipment for agriculture, the light and food industries, metal-cutting machine tools, and instrumentation.

Much of Ukraine’s industry is concentrated in the Donetsk Basin, also called the Donbas, where there are rich deposits of coal and iron ore.

The multi-branch chemical sector of Ukraine includes chemical, petrochemical and chemical-pharmaceutic sub-sectors with over 1,600 enterprises and structural units. The structure of the chemical sector includes two groups of enterprises – chemical (mineral fertilizers, non-organic acids and soda, synthetic resins, plastic masses, chemical fiber, man-made caoutchouc etc.) and petrochemical ones (products, of which the most important are car and motor-cycle tires).

Food industry is traditionally the major supplier of basic foods, such as sugar, salt, oil, alcohol, etc. Food industry is the leader of the agro-industrial complex. Among the major sub-sectors of the food industry are meat and dairy processing, sugar refining, flour milling and cereals production, oil extraction and starch and molasses production.

Light industry includes textile, knitting, clothing, leather, footwear, and other sub-industries. The key sector of the industry is textile production including cotton, wool and linen sub-units.

Ukrainian agriculture - The “bread basket of Europe”Of Ukraine's total land area of 60 million hectares, roughly 42 million is classified as agricultural land, which includes cultivated land (grains, technical crops, forages, potatoes and vegetables, and fallow), gardens, orchards, vineyards, and permanent meadows and pastures. Agriculture occupies 10% of GDP in Ukraine.

Advantages and disadvantages of Ukrainian economy

ADVANTAGES:

1. rich for resources

2. beneficial geographic position

3. improving attractive investment climate

4. nice social paterns

5. democracy

6. tha market is not mature, so it has spere to grow

DISADVANTAGES:

1. taxation burden is inflexible (easy to find the loopholes)

2. taxation system lacks progressive system of evaluation

3. SME taxation system is a real burden

4. corruption

5. brain-drain

6. lack of middle class (existence of wealth gap)

7. public debt amount to 30% of GDP