The Ukrainian Economy in the 1990s

Abstract

Most economic indicators tor Ukraine in the 1990s were overwhelm- ingly negative. From the data in table 2.1 it can he calculated that, from 1991–98, Ukraine’s real GDP deciined by a cumulative 62/1 percent. By comparison, Russia’s feil by less—just over 40 percent; average in the Commonwealth of Independent States (CIS) was a 50 percent decline.¹ Industrial output and capital Investment feil by simÜariy iarge magni- tudes: nearly 59 and 81 percent, respectrvely. No sector or mdustry was spared, witb the steepest declines Coming in beavy industry and raw materials extraction. Table 2.1 also indicates that the industrial col- lapse has sliown few signs of reversal, until 1999–200Ü. In 2001 there was a recorded growtb of 9.0 percent in real GDPr Only time will teil if tliis growth record can be sustained. The central point for present purposes is that Ukraine’s economic free-faii of the 1990s raises questions about the naturc of the collapse and its relation to the essential features of economic transition.