Capital City: Kiev
	It is %T:%M %A in Kiev

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Economic trends

With rich farmlands, a well-developed industrial base, highly trained labour force, and a good education system; Ukraine has the potential to become a major European economy. The economic situation records very high growth rates : 9.0% in 2006, 11.5% in 2007 and a forecast of 10.8% in 2008. The country’s long-term economic prospects depend on acceleration of its market reforms. The economy remains burdened by excessive government regulation, corruption, and lack of law enforcement; which are the main hurdles for attracting foreign investments. Combined with recent constitutional changes that weakened the authority of president Viktor Yushchenko; it will be difficult for him to continue with his agenda of structural economic reforms. Annual average inflation rate, remaining at 6,7% in 2007, shows a decreasing tendancy.

Main branches of industry

The agriculture sector has a major role in Ukraine’s economy and contributes nearly 10% to the GDP. The main crops are: cereals, sunflower seeds and sugar. Ukraine is the 5th largest exporter of cereals in the world. Ukraine is rich in mineral resources – principal ones being iron, magnesium, and coal. Ukraine is the 6th largest producer of iron in the world. The Ukrainian manufacturing sector is dominated by heavy industries like iron & steel (30% of the industrial production), coal mining, chemical, mechanical, and shipbuilding. Manufactured goods include airplanes, turbines, metallurgical equipment, diesel locomotives, and tractors. Much of the former USSR's space and rocket industry also exists in Ukraine. Although oil and natural gas reserves are limited, Ukraine is one of the world's leading energy transit countries, providing transportation of Russian and Caspian oil and gas across its territory.

International trade

Ukraine encourages foreign trade and investment. The share of foreign trade in country’s GDP has reached nearly 115%. One-third of Ukraine's exports go to Europe, while as nearly one-fourth goes to Russia and the CIS countries. The top three export partners are: Russia, Turkey and Italy. The commodities mainly exported are iron & steel, mineral fuels & oils, nuclear reactors & boilers, machinery & machine tools (nearly 30% of exports), and cereals. The top three import partners are: Russia, Germany, and Turkmenistan. Ukraine mainly imports mineral fuels & oils, nuclear reactors & boilers, machinery, vehicles, electric & electronic equipment, and plastics. Russia is a major supplier of oil & gas to Ukraine; constituting nearly one-third of the total imports.