Overview
With its educated workforce, proximity to EU markets, rich agricultural land and mineral and energy resources, Ukraine until recently was considered to be a promising growth market and a darling of the West. Up until autumn 2008, Ukraine's |
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GDP was growing at an average rate of approximately 6.2% in the decade prior to the market crash. Inflation was declining as was public sector debt, and exports were growing.
Current Crisis
This former Soviet republic has been hit hard by the current economic crisis, its stock market has crashed, its credit ratings have been downgraded, its companies overburdened with debt, and its political elite deadlocked in serious turmoil. Continued complications in Ukraine's relationship with Russia are helping exacerbate rifts between pro-Kremlin and pro-Western political elites, as well as between the majority ethnic Ukrainian population and the minority Russian population.
Industrial production has declined by 50% and the PFTS stock exchange index has declined by more than 80%. The index has since risen by approximately 49% from its March 2009 lows. The national currency has lost 60% of its value ...
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