UNIAN
The share of agricultural products in Ukraine’s exports has increased and the agro-industrial complex will remain the main export engine of Ukraine for at least the next five years, according to analysts from Da Vinci AG.
Over the last two months agricultural products in the country’s exports accounted for almost 38%, they said. The figure represents an increase of 9.2% in total export volumes as compared to the same period last year.
The share of exports of mineral products has declined by 4.6% in total export volumes, and the share of exports of non-precious metals and metal products is down by 2.2%. The share of exports of ferrous metals decreased by 2.5% in total export volumes, while the share of their products increased by 0.1%. The share of machinery exports decreased by 1.1% of total exports - from 10.1% to 9% as compared to the same period last year.
At the same time, there was a significant decrease in export of vehicles – by 1.8%, from 3.1% to 1.3%. This tendency is attributed to the loss of enterprises in the Russian-occupied Ukrainian territory of Crimea and the Donbas, according to the analysts’ report.
The analysts said the agricultural business continues to be the main locomotive of Ukrainian exports, with the trend being set around six years ago.
The analysts predict "the trend will be maintained in the future. The agro-industrial complex will remain the main export engine of Ukraine for at least the next five years, provided there is a proper public policy and a stable military-political situation."
At the same time, in their opinion, metallurgy will play a secondary role in export, but still a significant one, with the share in total export volumes projected at no less than 20% in the medium-term perspective.
Analysts also note a decline in the export share of mechanical engineering products. The analysts’ report emphasizes the necessity to establish new assembly enterprises with foreign capital in the territory of Ukraine that will be oriented at the markets of the EU and Asian countries. In this case, Ukraine will be able to increase the share of machinery export at least to the level of 2012.
"The structure of Ukrainian exports will be based on three main pillars: the agriculture sector, which will continue having a dominant position and will further increase its share of exports; a subdominant metallurgical sector, which will gradually lose its importance, but that will still long remain one of the leading export components; and a subdominant mechanical engineering sector, which, with an increase in number of new production facilities and geographical export vectors may build up its export share equivalent to the volume of export of metallurgical industry."