Ukraine Facts and Figures

Ukraine, located in Eastern Europe, borders Russia, Belarus, Poland, Slovakia, Hungary, Romania, and Moldova. With a population of around 41 million, its major cities include Kyiv (the capital), Kharkiv, Odesa, and Lviv. Ukraine is known for its fertile agricultural land and strong industrial sectors. It joined the World Trade Organization (WTO) in 2008 and became a member of the Council of Europe in 1995. The country has also pursued closer integration with the European Union, notably signing an association agreement in 2014.

Key Transformative Events in Ukraine’s History

Ukraine’s history has been shaped by key political and military events. The 2004 Orange Revolution, a peaceful protest against electoral fraud, led to the election of Viktor Yushchenko. However, the annexation of Crimea by Russia in 2014 and the ongoing conflict in the Donbas region dramatically altered Ukraine’s political landscape. These events spurred reforms in governance and military modernization, with Ukraine shifting closer to the West, seeking NATO membership, and pursuing economic and democratic reforms.

Demographics Overview

As of 2023, Ukraine has an estimated total population of 37 million people. The population density is 76 people per square kilometer of land area, with 70.1% living in urban areas. The working-age population (ages 15-64) constitutes 65.8% of the total, while the median age is 44 years. Life expectancy at birth is 69 years, and the fertility rate is low at 1.3 children per woman, contributing to a population growth rate of -2.7% annually. Ukraine faces a high death rate of 21.4 deaths per 1,000 people, and the infant mortality rate stands at 7.0 deaths per 1,000 live births.

Economy Landscape

Ukraine's GDP stands at approximately $178.76 billion, with a growth rate of 5.3%, positioning it at 57th globally. Despite this positive growth, inflation remains a concern, with a rate of 12.9% in 2023, expected to ease slightly to 6.4% in 2024. Ukraine's trade balance reveals a significant deficit, with exports of goods valued at $36.04 billion and imports at $63.53 billion, leading to a negative trade balance of $27.49 billion. The economy is heavily reliant on the services sector, which accounts for 60.8% of GDP, followed by industry (19.2%) and agriculture (8.2%). Manufacturing contributes 7.6% of GDP. The unemployment rate was 9.8% in 2021, showing a slight increase from the previous year. For businesses and investors, conducting market research in Ukraine can provide critical insights into the potential for growth within sectors like services, agriculture, and industry.

Public Finance Overview

Ukraine's public finance situation in 2023 reflects significant fiscal challenges, compounded by external dependencies and rising debt levels. The net lending/borrowing, or overall balance is negative, standing at -19.74% of GDP in 2023, an increase from -15.75% in 2022. Government debt is a key concern, with total general government debt reaching 81.69% of GDP in 2022. The central government debt, a major component of this, is also high at 83.12% of GDP in 2022, up from 36.76% in 2012, signaling a steep rise in borrowing over the past decade. Ukraine continues to rely on external support, with net official development assistance (ODA) accounting for 17.0% of Gross National Income (GNI) in 2022.

Military Outlook

Ukraine’s military has undergone significant changes, especially from 2016 onward. In 2016, the country had 204,000 military personnel, representing 0.46% of its population. Military spending, which was 3.2% of GDP in 2021, rose sharply to 33.5% of GDP in 2022.

Conclusion

Ukraine’s dynamic economy, evolving demographics, and shifting political and military landscape present both challenges and opportunities for businesses. As the country adapts to geopolitical changes and technological advancements, understanding local market dynamics is essential. Partnering with a market research agency in Ukraine allows companies to gain valuable insights into consumer preferences, emerging trends, and competitive forces. With the expertise of local researchers, businesses can navigate market complexities, make informed decisions, and tailor strategies to align with Ukraine’s unique economic and political context.