Сapital investment in Ukraine shrinks by over 38% in 2020

Ukraine's State Statistics Service says capital investment in the country shrank by 38.2% in 2020.

At the same time, UAH 419.837 billion (US$15 billion) in capital investment was spent over the period under review (excluding Russian-occupied areas in Crimea, Sevastopol and parts of Luhansk and Donetsk regions), according to the agency.

Capital investment declined by 42.9% in the fourth quarter of 2020 (Q4) year-over-year (y-o-y), by 36.2% in Q3, by 34.4% in Q2, and by 35.5% in Q1.

Read alsoInternational experts say US$21 bln needed to rebuild DonbasThe most significant reduction in such investment was reported in Kherson region (by 67.3% y-o-y), Zakarpattia region (by 58%), Kyiv region (by 57%), Lviv region (by 50.8%), Mykolaiv region (by 48%), Ivano-Frankivsk region (by 45.3%), and the city of Kyiv (by 36.3%).

In terms of sectors, the most significant decline was recorded in aviation and the sphere of culture, sports, and entertainment, by 75.9% and 71.1%, respectively. They are followed by warehouse sector (by 54.3%), wholesale trade (by 48.5%), healthcare (by 47.5%), agriculture (by 45.4%), education (by 45.7%), temporary accommodation and catering (by 44.8%), and industry (by 43.6%).

At the same time, capital investment in postal and courier services skyrocketed by 7.3 times.

The main source of financing for capital investment remains own funds of enterprises and organizations, which accounted for 66.5% of the total investment in 2020.

The share of local budget funds is 10.4%, that of the national budget is 8.7%, bank loans and other loans accounted for 6.7%, investment of the population in housing construction for 4.9%, and that of non-resident investors for 0.4%.

Ukraine's foreign trade balance

The deficit of Ukraine's foreign trade in goods and services in 2019 totaled US$3.633 billion, which was 41.2% down from the deficit reported in 2018, according to the State Statistics Service.

At the same time, the National Bank said the deficit of the country's foreign trade in goods and services in 2019 was estimated at US$12.117 billion, which was 7% up year-on-year.

As of February 1, 2021, the deficit of Ukraine's foreign trade in goods and services for 2020 stood at US$1.677 billion against a US$12.5 billion deficit a year earlier.

The deficit of the foreign trade in goods and services in January-December 2020 was estimated at US$255.5 million vs US$3.689 billion year-over-year.