Investment Climate
Ukraine’s investment climate has been historically marked by ever-changing business environment and great variance between official statistics and actual conditions.
Ukrainian currency Hryvnya lost 35% of its value during the fall of 2008 but stayed stable and even have regained a few percent of its value during the spring through the first months of the summer. Currency speculations in August-September has resulted in the decrease of the Ukraine’s national currency. The inflation rate in March was reported at 1.4% while real estate prices have continued their decline. The latter is seen by most market experts as a serious price correction which followed the Ukrainian currency decline. The market is expected to regain towards the Presidential elections now scheduled for January 17th, 2010.
Ukraine’s commitment to democratic values was strongly supported by the Orange Revolution of 2004. Since then, the political situation has not been calm but the trends have been positive and very promising.
Despite the political turmoil of 2007 and current attempts by the pro-Russian opposition to ruin Ukraine’s NATO plans, investors have remained interested in the Ukrainian real estate market, IT sector and industrial areas where privatization plans have been reviewed and better tender conditions are expected to be drawn by the new Cabinet of the Ukraine Steel Lady, Mrs Tymoshenko.
With the consumer demand growing firmly and consumer credit being more secure then ever before in Ukraine, all sectors of the Ukrainian economy continued to expand throughout 2008. But this expansion was seriously hampered by the world financial crisis which started affecting Ukraine in September 2008.
The optimism of the economic development is strongly supported by the WTO accession supported by the Organization in early February and the EURO-2012 hosting which will attract $ billions in infrastructure investments.
At the same time, the President Yuschenko and the new Cabinet of Mrs Tymoshenko are committed to fight corruption and reduce the regulatory obstacles giving a new speed to SME’s development which will result in further strengthening of a richer middle class, healthier competition and more transparent business regulations.
