Ukraine, with a population of 38 million, is ranked 37th globally, just behind Canada. Located in Eastern Europe, it spans 603,550 sq. km, ranking 44th, just below the Central African Republic.
Ukraine’s economic position in 2022 is notable, with a GDP of $160.50 billion USD, ranking 57th globally. It follows Kuwait, which has a GDP of $175.36 billion USD. The GDP per capita in Ukraine is $4533.98 USD, ranking 116th worldwide.
It lags behind Iran, Islamic Republic, with a GDP per capita of $4669.57 USD. Despite facing challenges, Ukraine’s economy shows potential for growth and development in the coming years.
What are the economic activities of Ukraine?
- Primary activities: 12.2% of GDP.
- Secondary activities: 28.6% of GDP.
- Tertiary activities: 60% of GDP.
Primary Sector of Ukraine
Ukraine’s primary sector, dominated by agriculture, thrives due to its fertile soils and diverse climate. With 71.3% of the land dedicated to agriculture, the country produces a variety of crops like maize, potatoes, wheat, and sunflower seeds, along with animal products such as milk and meat.
Despite contributing 12.2% to the GDP, agriculture plays a crucial role in providing employment and sustaining rural communities. The sector’s significance lies in the wide range of products it offers, ensuring food security and promoting economic stability.
The primary sector benefits from the country’s diverse geology, providing abundant natural resources like iron ore, coal, and oil. This enhances the economy through mining, energy production, and agriculture, utilizing resources like arable land, timber, and salt.
Ukraine’s oil economic activity plays a significant role in the country’s economy, with a daily production of around 33,235 barrels. Ranking 44th globally in oil production, Ukraine holds reserves of 395,000,000 barrels, accounting for 0.02% of the world’s oil reserves.
Ukraine’s gas production of 19,000 million m³ in 2020 ranks it 34th globally, contributing significantly to the country’s economic activity.
Secondary Sector of Ukraine
What is the secondary sector or what are secondary activities?
The secondary sector comprises industries that transform raw materials from primary activities into finished products for consumption. In Ukraine, the main industrial products include industrial machinery, ferrous and nonferrous metals, automotive and aircraft components, electronics, chemicals, textiles, and construction materials.
Manufactures in Ukraine’s total exports accounted for 30.12% in 2023, indicating their significance. However, other sectors may play a more crucial role in driving the country’s economy and trade balance.
Tertiary sector of Ukraine
What is the tertiary sector or what are tertiary activities?
The tertiary sector, also known as the service sector, encompasses the ‘soft’ parts of the economy where individuals provide knowledge and time to enhance productivity, performance, and meet needs. It involves intangible goods such as attention, advice, and expertise, catering to both consumer and business-to-business services. In Ukraine, the main tertiary activities include healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, transportation and logistics, and security and protection.
Highlighting these, Ukraine’s tourism plays a crucial role in its economy, with 13.71 million annual arrivals contributing significantly. The most popular destinations are the historic city of Lviv and the Crimean Peninsula, renowned for its scenic beauty and beaches. Tourism accounts for 0.3608 of the country’s population, highlighting its importance as an economic driver.
Another example of tertiary economic activity is the mobile cellular economic sector, with approximately 49 million subscriptions, fostering technological growth by enhancing connectivity and enabling digital innovation across various industries.
Military Activities and Economic Sectors of Ukraine
The military is a key example of various economic activities. In the primary sector, resources are extracted for military use, like metals and fuels. The secondary sector involves manufacturing military equipment, such as weapons and vehicles. The military also provides services in the tertiary sector, ensuring safety and support. Research and development in the quaternary sector help improve technology, while high-level decision-making in the quinary sector shapes military strategy.
In Ukraine, the military expenditure for 2023 is approximately $64.8 billion. This spending is about 33.5% of the country’s GDP. Ukraine has an active military force of 1,250,000 personnel, which means there are around 87.6 active military members for every 1,000 people in the population.
Biggest company in Ukraine
Which is the biggest company in Ukraine? The largest company is MTN Uganda, with a market value of 1.07 billion USD. It operates in the telecommunications industry, which is part of the tertiary economic sector. MTN Uganda was founded in 1998 and provides mobile services.
International Trade of Ukraine
Import Activities of Ukraine
Ukraine’s high import activities, accounting for 52.25% of GDP in 2023, play a crucial role in meeting domestic demand and supporting economic growth.
Ukraine’s key import activities include refined petroleum, cars, natural gas, garments, and packaged medicine. Its top import partners are Poland (17%), China (12%), Germany (9%), Turkey (6%), and Hungary (4%).
Exports Activities of Ukraine
Ukraine’s total exports in 2023 amounted to $36,185,539,498.82, accounting for 35.46% of its GDP. With export activities contributing significantly (medium importance) to the economy, diversification and stability in this sector are crucial for sustainable growth.
Ukraine’s export activities are diverse, with key partners including Poland, Romania, Turkey, China, and Germany. The country primarily exports commodities such as corn, seed oils, wheat, iron ore, and rapeseed.
Ukraine economy challenges in 2024
In 2024, Ukraine faces challenges in rebuilding infrastructure and agriculture post-war. Despite progress in anti-corruption reforms, the economy is still recovering from a 30% GDP contraction. International aid stabilizes foreign reserves, but the country struggles with balancing economic growth and reconstruction efforts.
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