Direct foreign investment in Ukraine increases fivefold
KYIV, Ukraine - Over the period of the last 12 months foreign direct investment to Ukraine has increased almost five times over.
KYIV, Ukraine – Over the period of the last 12 months foreign direct investment to Ukraine has increased almost five times over. Comparing the first six months of 2010 and 2011 analysts have detected a 4,9-fold growth indicating a positive tendency in the national economy while proving the growing investment attractiveness of Ukraine.
Foreign direct investment to Ukraine increase over the first six months of 2011 constituted USD 2,452 bln, that is 4,9 times larger than the increase over the period of the first six months of 2010 that equaled USD 0,496 bln. Experts say that foreign direct investment inflow has exceeded USD 1,000 per person mark for the first time ever and settled at USD 1,033.
Foreign direct investment flow to Ukraine amounts to USD 47,206 bln as of July 1, 2011. This figure has significantly increased over the last year indicating a strong tendency of the Ukrainian economy to attract more investors. Foreign direct investment flow to Ukraine experienced a 16,8% increase during the last 12 months.
Experts explain that the indicated foreign direct investment increase took place due to the strengthening of most currencies’ rate to the United States dollar.
Recently, Ukraine has been acknowledged as the leader among the Commonwealth of Independent States in the foreign direct investment growth. According to the World Investment Report 2011, issued by the United Nations trade and development body in July 2011, Ukraine demonstrated the FDI increase in the amount of 35% which is the highest rate for the CIS countries in 2010. Comparatively, the increase of the FDI flow to Russia in 2010 constituted only 13%, whereas Kazakhstan’s index dropped by 27,5%.
Also, a week prior to the UN report release, the global rating agency Fitch Ratings raised Ukraine’s long-term foreign credit rating from stable to positive. The significantly smaller budget deficit this year has been stated to be as one of the reasons for the revision of Ukraine’s rating. The economic recovery and spending restraint along with parliamentary approval of an unpopular pension reform contributed to Fitch’s decision to mark Ukraine’s economic advances.