About the macroeconomic performance of the economy of Ukraine

1. Chief indicators of economic and social development of Ukraine
( The information Ministry of Economic Development and Trade of Ukraine)

2. 20.12.2012 Chief indicators of economic and social development of Ukraine
Gross domestic product
Preliminary estimates show that in the 3rd quarter of 2012 the GDP dropped by 1.3% compared to the 3rd quarter of
2011.
In the 2nd quarter of 2012 nominal GDP was UAH 351.8 billion. In the 2nd quarter of 2012 real GDP (in permanent
prices as of 2007) grew by 3.0% compared to the 2nd quarter of 2012 and by 1.9% compared to the 1st quarter of
2012.
GDP per capita is UAH 7,715, which in real terms is 3.3% higher than in the 2nd quarter of 2011.
In the 2nd quarter of 2012 compared to the 2nd quarter of 2011gross value added growth occurred in agriculture
(11.4%), trade (6.9%), transport and communications (3.8%), mining industry (2.4%), production and distribution of
power, gas and water (2.4%), and in such types of business as real estate, leasing, engineering and services to
businesses (3.7%), construction (0.3%), public health and social care (1.7%). Gross value added dropped in
mining industry (0.3%), state governance (6.3%), financial operations (1.2%), and education (1.9%).
Industrial production sector
In October 2012 the total industrial production volumes grew by 5.8% compared to September 2012.
In processing industry industrial production volumes grew by 5.8%. Production volumes increased in food, beverage
and tobacco production (12.3%), light industry (8.4%), machine building (7.3%), wood processing and wood
production, except furniture (6.4%), cellulose and paper production and printing business (5.9%), chemical and
petrochemical industry (4.5%), production of coke and oil processing by-products (2.4%), production of other non-
metal mineral products (0.2%), metallurgy and production of ready-to-use metal products (0.1%).
In mining industry the volume of industrial production grew by 2.4% compared to September 2012, including by 6.4% in
mineral fuels production, and dropped by 2.9% in mineral production, except for mineral fuels.
The production and distribution of power, gas and water saw production volume growth by 11.4%.
Chief indicators of economic and social development of Ukraine

3. In October 2012 the total industrial production volumes dropped by 4.2% compared to October 2011.
In processing industry industrial production volumes dropped by 5.2%. Significant drop in industrial production
compared to October 2011 is observed in production of coke and oil processing by-products – 30.4%, machine
building – 10.0%(16.2% in machine and equipment building, 12.1% in electric, electronic and optical equipment
production, and 4.1% in transport production), metallurgy and production of ready-to-use metal products – 9.4%,
production of other non-metal mineral products – 7.0%, However, the following industries showed production
volume increase: cellulose and paper production and printing (12.4%), chemical and petrochemical industry (7.4%)
(including 8.2% in chemical production and 4.3% in rubber and plastic production), wood processing and wood
production, except furniture (1.6%),and light industry (1.4%).
Mining industry showed 0.5% increase in industrial production compared to October 2011, including 4.6% growth in
mineral fuels production, however, mineral production, except for mineral fuels, showed drop by 4.7%.
The production and distribution of power, gas and water saw production volume drop by 5.2% compared to October
2011.
The overall volume of production for the period from January to October 2012 compared to the same period
in 2011 fell by 1.4%, including by 3.6% in processing industry. Industrial production volumes saw growth by 2.6%
in mining industry and by 4.0% in production and distribution of power, gas and water.
Breakdown by types of industrial production
Machine building. Industrial production in machine building sector dropped by 5.3% over the period from January to
October 2012 compared to the same period in 2011. Production volume decreases are observed in production of
agricultural and forestry machines and facilities (33.5%), mining industry and construction (4.2%), automotive
industry (16.6%), electric machines and facilities (12.8%), gauging and measuring equipment (10.4%), and radio,
TV and communication equipment (5.5%). At the same time, production growth was observed in railway carriage
production (5.2%) and metallurgical machines and equipment production (0.3%). Over 9 months of 2012 the
number of profitable companies was estimated at 63.9% (compared to 64.1% last year).
Chief indicators of economic and social development of Ukraine

4. Metallurgical production and production of ready-to-use metal products. In the period from January to
October 2012 compared to the same period in 2011 production volumes in the industry dropped by 5.0%,
including in cast iron, steel and ferroalloy production (5.5%), tube production (3.9%), other types of primary steel
processing (10.6%),and non-ferrous metal production (9.1%). At the same time, growth was observed in
production of ready-to-use metal products (0.8%). Over 9 months of 2012 the number of profitable companies in
the industry was estimated at 57.3% (compared to 57.8% last year).
Chemical and petrochemical industry. In the period from January to October 2012 compared to the same period
in 2011 production volumes in the industry grew by 9.3%, including in agrochemical production (17.9%),
production of soaps, detergents, cleansers, polishers, perfumes and cosmetics (8.5%),pharmaceutical production
(5.8%), plastics production (3.7%). At the same time there was a drop in volumes of production of rubber products
(6.9%), core chemical products (4.7%), lacquers and paints (3.4%). Over 9 months of 2012 the number of
profitable companies in the industry was estimated at 68.6% (compared to 62.9% last year).
Production of food products, beverages and tobacco. In the period from January to October 2012 compared to
the same period in 2011 production volumes in the industry grew by 0.7%. Production volume growth was
observed in the following sectors: oils and fats (16.2%), vegetable and fruit processing and canning (3.4%), dairy
(3.3%), confectionary (0.7%), and meat (0.4%). At the same time production volumes dropped in beverage
production (2.0%) and tobacco (0.1%). Over 9 months of 2012 the number of profitable companies in the industry
was estimated at 59.3% (compared to 55.1% last year).
Light industry. In the period from January to October 2012 compared to the same period in 2011 production volumes
in the industry dropped by 7.2%. Decrease in industrial production volumes was observed in the following sectors:
leather production and production of goods from leather and other materials (18.8%), textile production, production
of clothes, fur and fur products (4.4%). Over 9 months of 2012 the number of profitable companies was estimated
at 51.6% (compared to 62.9% last year).
Chief indicators of economic and social development of Ukraine

5. Wholesale and retail trade
Real volume of wholesale trade in the period from January to October 2012 compared to the same period in
2011dropped by 4.7% (last year it grew by 0.7%).
In the period from January to October 2012 compared to the same period in 2011 the volume of retail trade grew by
15.7% (14.9% last year).
The volume of retail trade of companies operating in retail trade and restaurant sectors grew by 13.9% (14.1% last
year) compared to the same period last year.
Consumer market prices
Consumer price index was 100.0% in October 2012, and 99.7% from the beginning of 2012 (104.2% last year).
In October 2012 prices of food products and non-alcohol beverages dropped by 0.2%. The sharpest drop was in the
price of vegetables (5.1%) and sugar (2.3%). Prices also dropped for fruit (0.2%), fish and fish products (0.9%),
bread and bakery (0.2%), meat and meat products (0.1%). At the same time, prices jumped for eggs (4.4%), milk
(0.8%), cheese and soft cheese (0.6%), sunflower oil (0.2%), macaroni (0.2%) and bread (0.2%).
Prices for alcohol beverages and tobacco increased by 0.4%.
In October 2012 prices (tariffs) of accommodation, water, power, gas and other fuels in general grew by 0.1%, including
accommodation maintenance and repairs (0.3%) and hot water and heating (0.2%). However, charges for sewage
and water supply fell by 0.1%.
In October 2012 transport prices grew by 0.2%, which is first of all caused by the growth in prices of oils and lubricants
(0.9%). Public railway prices decreased by 4.5%.
Prices of services provided by educational institutions grew by 0.1% which is caused by 1.2% increase in fees of
secondary education institutions. Fees charged by pre-school institutions feel by 0.1%.
Prices in sectors of public health, communications, leisure centers, restaurants and hotels remained at the last month's
level.
Chief indicators of economic and social development of Ukraine

6. Prices of industrial producers
In October 2012 price index of industrial producers was 98.5% and 101.8% from the beginning of 2012 (115.6% last
year).
In October 2012 prices of mining producers fell by 4.9%. In mineral production, except for mineral fuels, prices dropped
by11.5%, including 13.5% for metal ore production. In mineral fuels production, prices grew by 1.8%, including
12.8% in oil production sector.
In processing industry prices grew by 0.2%. Price growth was also observed in chemical production (1.5%), cellulose
and paper production and printing business (0.5%), production of other non-metal mineral products (0.4%),
production of electric, electronic and optic devices (0.3%), textile production, and production of clothes, fur and fur
items (0.2%). However, the following sectors demonstrated price reductions: coke production (1.5%) and oil by-
products production (0.4%).
In food, beverage and tobacco production sector prices generally increased by 0.7%,including in tobacco production
(6.2%), flour and crop products, oils and fats (1.4%),dairy products (1.2.%), dried bread, non-perishable cookies,
pies and pastries (0.6%). At the same time, sugar prices fell by 2.8%.
In the sector of production and distribution of power, gas and water prices dropped by 4.7% due to power price drop by
5.2%.
Fiscal sector
Real income in the Consolidated Budget over 10 months of 2012 compared to the same period in 2011grew by 10.1%,
and this figure reached 7.8% for the State Budget.
The deficit of the Consolidated Budget for 10 months of 2012 totaled UAH 29,184.2 million (UAH 8,040.3 million last
year). The deficit of the State Budget totaled UAH 33,203.2 million (UAH 12,353.4 million last year).
The income in the Consolidated Budget for the period from January to October 2012 totaled UAH 353,685.0 million
(UAH 318,854.8 million last year), while in the State Budget this figure was UAH 273,501.7 million (UAH 251,845.1
million last year).
Chief indicators of economic and social development of Ukraine

7. Fiscal sector (continue)
In the income part of the Consolidated Budget the largest share is represented by tax earnings which total 82.7% of the
overall income (84.2% last year). The specific weight of value-added tax in the income part is 31.8% (33.3% last
year), while individual income tax contributed 15.6% (15.2% last year) and corporate income tax contributed
12.4% (13.1% last year).
Expenditures from the Consolidated Budget for the period from January to October 2012 amounted to UAH 378,767.9
million (UAH 323,760.8 million last year) while in the State Budget this figure was UAH 302,630.9 million (UAH
261,096.1 million last year).
In the period from January to October 2012lending in the Consolidated Budget amounted to UAH 4,101.3 million.
Lending in the State Budget amounted to UAH 4,073.9 million (loans granted amounted to UAH 5,245.4 million,
loans repaid amounted to UAH 1,171.4 million).
Foreign exchange and lending market
Official Ukrainian Hryvna to United States Dollar exchange rate as of November 1, 2012was UAH 7.9950/USD. From
the beginning of 2012 Ukrainian Hryvna has been slightly devaluating against United States Dollar by 0.32
kopecks, i.e. by 0.04%.
Official Ukrainian Hryvna to EURO exchange rate as of November 1, 2012was UAH 10.3853/EURO. From the
beginning of 2012 Ukrainian Hryvna has been slightly devaluating against EURO by 8.73 kopecks, i.e. by 0.5%.
In the period from January to October 2012money stock increased by 6.4% (11.5% last year),while the volume of cash
in circulation increased by 1.2% (2.9% last year) and the volume of base money increased by 2.4% (3.8% last
year). As of the end of October 2012 the share of cash in circulation in the overall money structure was 26.7%
compared to 28.1% in the end of 2011, and in the structure of base money its share was 79.4% as compared to
80.3% in the end of 2011. The level of monetization of the national economy as of the end of October 2012 was
47.1% (49.0% last year).
As of the end of October 2012 debt on loans raised to Ukraine’s economy was UAH 815.9 billion. From the beginning of
2012 the overall volume of loans granted increased by 1.8% (including by 6.7% in national currency), but the
volume of loans granted in foreign currency dropped by 5.5%.
From the beginning of 2012 deposits of banks grew by 7.6% and totaled UAH 539.4 billion as of the end of October.
Deposits on household accounts grew by 14.7% and totaled UAH 356.1 billion as of the end of October 2012.
Chief indicators of economic and social development of Ukraine

8. Agricultural sector
In the period from January to October 2012 the volume of agricultural production in all categories dropped by 5.1%
compared to the relevant period of 2011, including in agrarian farms (7.7%) and public farms (2.5%).
Over 10 months of 2012 volumes of crop production in all categories dropped by 8.3% compared to the same period in
2011, including in agricultural businesses (12.2%) and public farms (3.9%).
In the period from January to October 2012 the overall volume of livestock production grew by 2.9% compared to the
same period in the previous year, including in agricultural businesses (7.0%) and public farms (0.1%).
In the period from January to October 2012 compared to the same period in 2011all categories of businesses delivered
growth in production of milk (2.7%), meat (slaughter cattle and poultry) (2.2%) and eggs (1.7%).
In the period from January to October 2012 compared to the same period in 2011 the overall sales of agricultural
products produced by agrarian businesses grew by 24%, including crop production (34%) and livestock production
(4%).
Average prices of agricultural products sold by agrarian businesses in the period from January to October 2012
compared to the same period in 2011 grew by 6%, including livestock production (12%), but dropped for crop
production (1%).
Capital investments
In the 1st half-year of 2012 compared to the first half-year of 2011 the volume of capital investments raised by the
country’s companies and institutions from all sources of finance grew by 29.1% and totaled UAH 112.2 billion.
Areas of capital investment raising
By asset types. 96.6% of the overall capital investments is used for tangible assets, including in residential, non-
residential and engineering structures and facilities (52.2%), machines, equipment and facilities (30.7%), vehicles
(10%), long-term biological assets for crop and livestock production (0.6%). 3.4% of the overall capital investments
is used for intangible assets, including commercial designations, industrial property, copyrights and allied rights,
patents, licenses etc (46.7%) and costs associated with software purchase/development (43.6%).
Chief indicators of economic and social development of Ukraine

9. By types of business operations. A significant share (34.7% of the overall volume) of capital investments was
used for development of industrial businesses. These businesses include transport and communication companies
(14.6%), construction companies (13.6%), real estate dealing, leasing and engineering companies (13.0%),
companies active in trade, car repairs, household items and personal items (9.8%), and companies in the sector of
agriculture, hunting and forestry (5.6%).
Compared to the 1st half-year of 2011, the volume of capital investments in the industrial business development grew
by 23.3%, including in mining industry (54.1%) and production and distribution of power, gas and water
(49.6%),but dropped by 1.8% in processing industry. In general, capital investment raising grew for almost all
types of business operations, including construction (64.2%), fishing and fisheries (44.4%), transport and
communications (42.1%), financial operations (37.8%), trade, car, household and personal repairs (34.0%), hotels
and restaurants (22.0%), real estate, leasing, engineering and services to businesses (19.8%), agriculture, hunting
and forestry (17.0%), state governance (15.4%).
In the social sphere capital investments in public health and social care grew by 9.2%. However, there was a drop in
capital investments in utility companies, individual service providers, culture and sports (17.0%) and educational
institutions (16.8%).
Foreign economic operations
Foreign trade balance
For 9 months of 2012, export of goods and services was USD 60,802.7 million and import reached USD 67,275.9
million. Compared to the same period in 2012 exports of goods and services grew by 1.4% and imports dropped
by 5.2%. Negative foreign trade balance was USD 6473.2 million (last year trade balance was also negative and
totaled USD 3982.9 million).
Chief indicators of economic and social development of Ukraine

10. External trade in goods
In the period from January to October 2012 export of goods was USD 50,798.7 million, and import reached USD
62,273.3 million. Compared to the same period in the previous year, export of goods grew by 1.8% and import of
goods grew by 4.7%. Negative foreign trade balance was USD 11,474.6 million (last year trade balance was also
negative and totaled USD 9,588.6 million).
For the period from January to October 2012 the rate of export/import coverage was 0.82 (0.84 last year).
Ukraine was engaged in foreign trade operations with partners from 210 countries of the world.
The largest export supplies were delivered to Russian Federation – 25.8% of the overall export volume (railway
locomotives, ferrous metals, mechanic machines), Turkey – 5.5% (ferrous metals, seeds and fruit of oil-yielding
crops, animal fats and vegetable oils), Egypt - 3.9% (crops, ferrous metals, animal fats and vegetable oils), Poland
– 3.8% (ferrous metals, ores, slag and ash, seeds and fruit of oil-bearing plants), Kazakhstan – 3.7% (railway
locomotives, ferrous metals, mechanic machines), India – 3.3% (animal fats and vegetable oils, mineral fuels, oil
and oil by-products, ferrous metals) and Italy - 3.3% (ferrous metals, seeds and fruit of oil-yielding plants,
fertilizers).
Export of goods grew for Egypt (2.8 times), Kazakhstan (50%) and India (14%). At the same time, exports dropped for
Italy by 28.8%, Russian Federation by 10.7%, Poland – 7.7%, Turkey – 1.7%.
The largest share of imports to Ukraine was from Russian Federation – 32.9% of the overall export volume (mineral
fuels, oil and oil by-products, mechanic machines, ferrous metals), China – 9.2% (mechanic and electrical
machines, footwear), Germany – 7.9%(mechanic machines, land transport excluding railways, pharmaceutical
products), Belarus – 6.4% (mineral fuels, oil and oil by-products, land transport excluding railways, fertilizers).
Poland – 4.1% (mineral fuels, oil and oil by-products, plastics, polymer materials, paper and cardboard), United
States of America – 3.7% (mineral fuels, oil and oil by-products, land transport excluding railways, mechanic
machines) and Italy – 2.6% (mechanic and electrical machines, plastics, polymer materials).
There was an increase in imports of goods from Belarus (37.7%), China (28.3%), USA (20%), Italy (18.7%), Poland
(10.4%), and Germany (3.4%). At the same time imports from Russian Federation fell by 5.1%.
Chief indicators of economic and social development of Ukraine

11. Foreign trade in services
For the period from January to September 2012 the volume of export of services was USD 10,004 million, which is
0.8% less than for the period from January to September 2011. The volume of import of services was USD 5,002.6
million and grew by 11.7% if compared to the same period of the previous year. Positive balance of foreign trade in
services was USD 5,001.4 million (USD 5,605.7 million last year).
Direct foreign investments
Over 9 months of 2012 foreign investors directly invested USD 4,319.1 million into Ukraine’s economy (in form of share
capital).
Net increase of foreign capital invested into Ukrainian economy (including changes in its value, losses, investment re-
classification, exchange rate differences etc) over 9 months of 2012 was USD 2,599.6 million, which is by 29.4%
less than over 9 months of 2011.
As of October 1, 2012, the overall volume of direct foreign investments in Ukraine was USD 52,673.8 and grew by 5.2%
from the beginning of 2012, and amounted to USD 1,157.0 per capita. EU accounted for 78.6% of the overall
investments, while the CIS share was 7.9% and the rest of the countries brought 13.5%.
Between January and September 2012 investments came from 129 countries of the world. The major investor countries
that form more than 82% of the overall volume of direct investments are Cyprus (28.6%), Germany (14.1%),
Netherlands (9.6%), Russian Federation (7.0%), Austria (6.3%), United Kingdom (4.5%). British Virgin Islands
(3.4%), France (3.4%), Sweden (3.0%) and Switzerland (2.1%).
Investors are significantly interested in financial operators, who represent 29.8% of the overall investment portfolio.
Attractive for investments are also companies that deal in real estate, leasing companies, engineering companies
and business service providers (16.2%), trade companies, car and household repair companies (10.4%), transport
and communication companies (5.8%).
The share of industrial companies is 32.0% of the overall investment portfolio (including 26.5% in processing plants and
2.7% in mining plants). Sectors of processing industry that demonstrate the highest investment levels include
metallurgy and ready-to-use metal products (11.7% of the overall investment volume), food products, beverages
and tobacco (5.7%), chemical and petrochemical sector (2.5%), machine building (2.2%) and production of other
non-metal mineral products (1.9%).
Chief indicators of economic and social development of Ukraine

12. Public income
Nominal and real public income
Over the 2d quarter of 2012 as compared to the same period in 2011 nominal public income grew by 15.2% and
reached UAH 345.5 billion. Nominal available income that may be used by the public to buy goods and services
grew by 14.5%, and real available income (price factor included) grew by 15.0%.
In the 2nd quarter of 2012 available income per capita was UAH 5,749.1, which is 14.8% more than in the same period
of the previous year.
Salary and social benefits
The average nominal salary of one staff employee in October 2012 grew by 1.5% and reached UAH 3,110. Nominal
salary grew by 13.9% compared to October 2011. In the period between January and October 2012 average
monthly salary of staff employee was UAH 2,988 and grew by 15.5% compared to the relevant period of the
previous year.
In October 2012 real salary grew by 1.8% compared to September 2012 and grew by 14.1% compared to October
2011. Real salary in the period from January to October 2012 grew by 14.8% compared to the previous year.
The overall salary debt fell by 3.3% within October 2012 and as of November 1, 2012 was UAH 896.9 million. The debt
reduced by 8.2% from the beginning of the year.
Salary debt of going concerns fell by 1.8% within October 2012 and was UAH 412.6 million as of November 1, 2012.
The debt reduced by 5.4% from the beginning of 2012.
In the debt portfolio of going concerns the largest shares are represented by industry (50.3%), real estate dealings,
leasing and engineering and services to businesses (18.2%), construction (10.3%), transport and communications
(8.8%), utility and individual services, culture and sports (4.8%), agriculture, hunting and related services (2.2%),
public health and social care (1.5%).
Demographic situation
As of October 1, 2012 the population of Ukraine was 45,559.2 thousand people. Between January and September
2012 the population decreased by 74.4 thousand people or by 2.2 people per 1,000 people.
The overall reduction of population is caused by natural reduction mainly (104.8 thousand people), while migration
growth was 30.4 thousand people.
Chief indicators of economic and social development of Ukraine

13. Employment market
In October 2012 the number of unemployed citizens fell by 3.9% and was 399.9 thousand as of November 1, 2012. The
official unemployment levels dropped by 17.2% from the beginning of 2012 and by 5.5% from November 1, 2011.
The official unemployment level was 1.4% of the capable people as of November 1, 2012. The highest unemployment
levels are registered in Zhytomyr (2.6%), Cherkasy (2.4%), Rivne (2.2%), Kirovograd (2.2%) Regions, while the
lowest unemployment levels are registered in Kyiv (0.5%), Sevastopol (0.6%) and Odesa Region (0.8%).
Chief indicators of economic and social development of Ukraine
Alexander Bondarenko Ph. D ( The information Ministry of Economic Development and Trade of Ukraine)
alexbondfin@yandex.ru; http://ua.linkedin.com/pub/alexander-bondarenko-ph-d/79/682/b30