Corruption, failure of property rights and excessive business regulation are key problems of Ukrainian business environment. What changes have occurred in this field over the past six months that have passed since the overthrow of the regime of Yanukovych? What does Ukrainian business await primarily from the government to improve the business environment in the country now? Today Ukraine is in a situation where had never been. On the one hand, it is a deep economic crisis and the need to reform and rebuild the key state institutions. In addition, the war in the East - fighting against terrorists, supported by Russia, which require resources and mobilize the forces of the society.
Foreign direct investment (FDI) has a signifi cant potential to be a motor for economic growth of the country, making an important contribution to GDP growth and improvement of global competitiveness of the country. It has a special importance and stronger impacts on economic development of emerging economies hat have a shortage of own resources for funding the economic growth.
The presentation “The Usefulness of Business Tendency Survey Data for Short-Term Forecasting in the Post-Transition Economy: The Case of Ukraine” that has been made by Oksana Kuzaikiv, IER Executive Director, 70th East Jour Fixe of the OesterreichischeNationalbank in Vienna (Austria) is available now in the IER web.
Ukraine’s economy is highly sensitive to world economic trends. Movements of world prices on commodities like metals, raw oil or chemicals as well as capital flow reversals have a significant impact on domestic economic trends. This sensitivity was demonstrated in 2005 that changes on world metal market resulted in sharp reduction of exports causing significant deceleration of Ukraine’s real GDP growth. The story repeated in 2008 when a swift change in world economic conjuncture and financial markets turmoil were among major causes of the economic crisis in the country. The real GDP dropped by about 15% in 2009, being one of the largest reductions among European countries.