GDP structure of Ukraine. Economic development of Ukraine after gaining independence
History of Ukraine as a separate statebegins on August 24, 1991 - the day the Supreme Council of the Ukrainian SSR adopted an act of independence. The referendum held on December 1, 1991 overwhelmingly approved this decision. What successes did the young state achieve in 30 years?
The Legacy of the USSR
Until the collapse of the Soviet Union Ukraineremained the most developed republic in its composition. The industry of Ukraine numbered more than 300 branches. She achieved the greatest success in metallurgy, electric power engineering, machine building, mining and chemical industries, and agriculture.
Here are just a few indicators of the republic in the USSR:
- 50% of the extraction of iron ore;
- 36% of steel production;
- 62% of sugar production;
- 32% of vegetable oil;
- 71% of livestock products.
In addition, the military-industrial complex was developed. Famous ballistic missiles "Satan" were collected in Dnepropetrovsk Yuzhmash.
New story
The GDP of Ukraine in 1991 was 81.5 billion. The severance of economic ties and the economic recession in all the republics of the former USSR caused a protracted crisis in Ukraine. The most difficult year was 1999, when Ukraine's GDP dropped to 40.8 billion.
As a result of the crisis, many science-intensiveproduction. The main export items of Ukraine were agriculture, metallurgy and the chemical industry. The growth of Ukraine's GDP was also not helped by political instability in the country. The population of Ukraine was divided roughly into 2 parts. One can be roughly called pro-Western, the other - pro-Russian.
As a result, Ukraine could not all this timedetermine the strategy of development. The change of the president was accompanied by a change of course - towards the West or Russia. During one of these political exacerbations, a gas conflict with Russia took place, as a result of which the price of imported gas rose sharply. This was another blow to the Ukrainian industry.
The dramatic events of 2014 didcross on cooperation between the two countries. The crisis crashed the car industry. The release of new cars has practically ceased. Ukraine, whose per capita GDP was already low, fell by 111 in the world in this indicator.
The weakness of central authority is also a distinctive onea sign of Ukraine. Privatization in Russia and Ukraine took place in a similar way. As a result, the most profitable industries were in the hands of a narrow stratum. Any president of Ukraine must inevitably reckon with the interests of oligarchic clans, who have gained considerable independence, participate in political life, control the media and conduct a secret struggle among themselves, the echoes of which appear in newspapers and on television.
Another problem is the conflict between the president andparliament. The parties were dragging their authority over themselves, as a result, Ukraine for its short history was the presidential and parliamentary republic. Such conditions do not contribute to the inflow of investments, nor to the development of science-intensive technologies. The structure of the economy has been constantly simplified, the main export item has been rolled metal and agricultural products.
Comparison of the living standards of Russia and Ukraine
Despite the fact that all macro-indicators in Russiahigher than in Ukraine, the standard of living in these countries until recently was comparable. The difference in salaries was compensated by much lower prices, first of all, for food products. On average, in Ukraine they cost 30-50% cheaper. Housing services were also much more expensive until 2014 in Russia.
In 2014-2015, Ukraine was forced topressure the IMF to raise tariffs for electricity, gas and heat for the population. These measures were designed to equalize the balance of payments, but they caused a sharp impoverishment of the population. Ukraine today resembles Russia in the early 1990s with the same problems - unrest in the regions, a low standard of living, huge public debt and dependence on external creditors.
Industry of Ukraine by regions
If you look at the GDP statistics of Ukraine forregions, it turns out that the main contribution to its formation is made by Donetsk, Lugansk, Dnepropetrovsk and Odessa regions. Lugansk and Donetsk regions form a single industrial complex - Donbass.
Their contribution to the economy of the country is 17% of GDP. It concentrates almost all the coal mining industry and many metallurgical enterprises. Well developed livestock and agriculture. The share of arable land in these areas reaches 80%.
Dnepropetrovsk region has the richest deposits of iron ores and non-ferrous metals. Along with the smelting of metal, it became famous for its mechanical engineering and production in the space and rocket industries.
The leader in the contribution of GDP is Kiev with 18.9%. It is the financial and scientific center of Ukraine. But here it is worth considering that many of the largest enterprises are registered in the capital, and activities are conducted in other areas.
Western regions economicallyare poorly developed. This region lives mainly due to agriculture and trade. An exception is unless Mr. Lvov, where there is industrial production. In the northeast of Ukraine, the chemical industry is well developed.
Dynamics of GDP change in Ukraine by years
During its independence, Ukraine experiencedseveral downs and ups. According to the schedule of GDP changes, there are several points. From 1992 to 1999, the GDP fell. Then, GDP growth was observed for 8 years, but the global crisis of 2008 also hit Ukraine, which coincided with the gas conflict with Russia and the disagreements between President V. Yushchenko and Prime Minister Yulia Tymoshenko.
By 2012 it was possible to achieve stabilizationeconomy, but not for long. Until 2014, a small drop in production continued. The resignation of President Yanukovych and the subsequent separation of the Crimea and the war in the Donbass led to a new crisis.
Prospects and forecasts
In the light of the ongoing conflict in the eastUkraine there can be no question of stability. The fall of the hryvnia to 3 times exacerbated the problem of external debt. Now it has already exceeded the 100% GDP mark. Many experts expect a default on Ukraine's foreign obligations this year. Against this background, the fall in Ukraine's GDP by 9% seems extremely optimistic. The stabilization of the economy, first of all, depends on the cessation of military confrontation.
