Expert sees demographic trends, brain drain as major obstacles in Ukraine

Financial expert Vasyl Gorbal says the current demographic situation in Ukraine and a brain drain have become major obstacles to the development of the country's economy.

Read alsoUkraine's population to drastically shrink by 2050 – scientists

"Unfortunately, we still don't mention in our economic analyses that we are facing a demographic problem related to a labor shortage. This is what most foreign investors pay attention to, when establishing any businesses or production facilities, even if they see low wages as an advantage," the expert told the Ukrainian online news outlet Obozrevatel on December 5.

According to Gorbal, these factors deter foreign investors from Ukraine.

The expert cited an example of a Ukrainian enterprise that is part of an automotive industry cluster.

"In the west of Ukraine, there is a conveyor with many workers. Their commuting distance, despite the fact that they are a low-skilled workforce, is expanding every year. The route of the buses that take the workers to the site extends year after year," the he said.

"In addition, any investor, analyzing prospects for the development of production in Ukraine, draws attention not only to the availability of a skilled labor force, but also to the demographic situation. Our demographic forecast for the next two decades is extremely critical and bad," he stressed.

According to Gorbal, the government should take steps to combat the brain drain and improve the demographic trends.

"It's very bad when the mortality rate is almost twice the birth rate," the expert added.