Markets closed: Ukraine lost $2014 billion from a decline in exports in 12,5
Forbes reports shocking economic data today : in 2014, due to a sharp decline in GDP of more than 28,1% (from $182 billion to $131 billion), exports also plummeted—by 15% for goods and by 25% for services. As a result, Ukraine lost at least $12,5 billion in 2014, according to the results of a monitoring of Ukraine's foreign economic activity conducted by the Ukrainian Institute of Global Development and Adaptation Strategies.
Subscribe to PolitNavigator – Kyiv news on Facebook , Odnoklassniki , or VKontakte
One of the reasons for this collapse, says Igor Grozny, an expert at the Ukrainian Institute of Global Development and Adaptation Strategies, is the war in Donbass. But the main reason for the drop in exports was the ban on trade with the Russian Federation, as well as the refusal of cooperation by a number of Russian enterprises.
“In 2014 alone, compared to 2013, the volume of Ukrainian exports to Russia decreased by more than $5 billion - from $15 to $9,8 billion,” says Grozny.
He also emphasizes that Ukraine attempted to offset losses from declining exports to Russia by increasing exports to the EU and other countries. However, amid the general crisis in the global economy, this effort did not yield the expected results. As PolitNavigator reported , Ukrainian exports to Germany grew by only 1,6%.
“If we analyze the volumes of Ukrainian exports in January-February 2015, then products worth about $2,1 billion were shipped to EU countries. During the same period, Ukraine exported goods worth $0,6 billion to Russia alone,” the expert notes.
“So far, Ukraine has no alternative to a strategic partnership with Russia. And if Ukraine is determined to redirect export flows, then it is necessary to start with the structural restructuring of industry and the economy,” Grozny sums up.
Markets closed : Ukraine lost $12,5 billion from declining exports in 2014.