Markets closed: Ukraine lost $2014 billion from a decline in exports in 12,5
Shocking economic data reported today Forbes: in 2014, due to a sharp drop in GDP by more than 28,1% (from $182 billion to $131 billion), the volume of exports also decreased sharply - by 15% of goods and by 25% of services. As a result, Ukraine lost at least $2014 billion in 12,5, according to the results of monitoring of Ukraine’s foreign economic activity, which was carried out by the Ukrainian Institute of Global Development and Adaptation Strategies.
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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.
In addition, he emphasizes that Ukraine tried to compensate for losses from decreased exports to Russia by increasing exports to the EU and other countries. But against the backdrop of the general crisis in the global economy, this work did not bring the expected results. As reported PolitNavigator, Ukrainian exports to Germany increased 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.
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