The Most Promising Sectors of the Ukrainian Economy

by Meifan Honcharuk
Monday, December 20, 2021
The Most Promising Sectors of the Ukrainian Economy

List of the most promising sectors for investment

Every year Ukraine becomes more and more attractive for investors, providing access to a vast sales market with more than 42 million consumers. Compared to developed countries, the costs are lower not only for labor but also for raw materials and other materials, particularly electricity and water.

Based on the results of the analysis of the sectors of the Ukrainian economy, the following types of economic activities were identified, which have the greatest prospects for further growth and attracting foreign investment:

  • Textile production;
  • Food production;
  • Manufacture of wearing apparel
  • Manufacture of pharmaceutical products;
  • Manufacture of computers, electronic and optical products;
  • Manufacture of electrical equipment;
  • Furniture manufacture;
  • Cultivation of annual and biennial crops;
  • Telecommunication enterprises;
  • Enterprises engaged in computer programming and related consulting.
  • Enterprises engaged in computer programming and related consulting.

According to the National Investment Council of Ukraine, the largest net profit from 2010 to 2018 was shown by the production of computer programming (9800%), the food industry (1186%) and the production of electrical equipment (778%).
It is noted that the companies engaged in computer programming have increased the volume of products sold 10 times over 9 years. Capital investments grew until 2016. In the same year, the net profit in the industry began to increase sharply and in general, from 2010 to 2018, it grew by 9800%.
As for food production, this industry came out of the year's crisis only in 2017. Capital investments in those industries have grown by 326% over 9 years.
In the electrical equipment production industry, according to the report, the capital investment increased by 248%, and net profit by 778%.

These sectors were selected due to the best ratio of growth in net profit to growth in capital investment.

It is expected that this pace of development will continue in the future. However, this does not mean that investors should not carefully weigh the risks specific to each industry. Having everything necessary for business development, Ukraine is becoming more and more attractive for international investors. Despite many challenges, investors value the willingness of the government and society to take steps to transform Ukraine into a dynamic market economy.

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