An Outlook For the Future of Investment Climate in Ukraine

An Outlook For the Future of Investment Climate in Ukraine

The present economic climate in Ukraine is favorable for business investments. According to reliable sources, the economic output per capita in Ukraine is expected to grow by 4% in next five years. A considerable part of this increase will take place in agricultural sectors due to favorable conditions in export market GT Invest. The price of basic products like sugar, meat and dairy is expected to decrease while import cost will rise. This means profit margins will be large for business owners in the field of agriculture and small and medium scale manufacturing.

Ukraine with its favorable position in the middle of the European region and affordable as compared to advanced European countries and at the same moment, a relatively educated and skilled population can become an ideal location for investment in favor of your business due to the current economic situation. There are two important factors that are instrumental in determining the investment climate in Ukraine. These factors are: stable economic situation and political stability.

In order to ensure the investment climate in Ukraine proper investment structure needs to be developed by business community so that they can provide correct advice to their customers as to where to invest their money. The high level of corruption prevalent in the former Soviet Union makes it impossible for potential investors to locate those countries that are free from corruption. Only by taking efforts to eliminate corruption in government sector, you can improve the investment climate in Ukraine. Prominent Ukrainian organizations are working hard to achieve this goal.

Another important aspect of investment climate in Ukraine is political stability. The prolonged period of uncontrolled chaos in neighbouring country will negatively affect the investor’s confidence in investing in Ukraine. By creating a conducive environment for investors, the domestic political stability of country plays a crucial role. Since the recent elections in Ukraine there have been noticeable changes made to the way the political system functions. If investors want to know what the political situation in country is like they can take the help of leading international companies that conduct business in Ukraine.

The outlook for the future of investment climate in Ukraine is looking very good. The government of country is ready to take measures to make things better. A series of measures including introduction of a new tax system and a simplified licensing procedure are being taken by the authorities in order to attract more foreign investors to invest in ukraine.

The only difficult aspect of investment climate in Ukraine is lack of land market. A big portion of lands in Ukraine is reserved for agriculture. In order to facilitate development of agricultural sector there has to be enough space available. In order to improve land market there is an urgent need to introduce a specialized law for land market. The European investment scheme in Ukraine is a great example of how foreign direct investment can be effectively used to develop the economy of country.

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