Ukraine is emerging from the 2009 economic and financial crisis, but serious structural weaknesses remain unaddressed. Fiscal imbalances are significant and large social transfers, inefficient public services and considerable quasi-fiscal subsidies threaten sustainability. The financial sector is fragile and the business climate ranks persistently as the weakest in the region.
Despite export led recovery over the past two years, output is still below pre-crisis levels and the economy remains vulnerable to volatile commodity prices and dependent on foreign financing. The public sector is large, but the quality of many public services has been deteriorating.
Surveys conducted on the eve of Ukraine's 20th anniversary of independence, as well as recent social protests, reveal widespread discontent with the economic situation and with poor public governance. Nevertheless, the gap between public expectations and economic reality masks some underlying strengths and achievements, such as progress in poverty reduction over the past decade, relatively good medium-term growth prospects and low levels of public debt by regional standards.
Executive summary »
Full report »
Full report (Ukr) »
Annexes (Eng) »
Annexes (Ukr) »