What you need to know about Ukraine’s economy – The Whistler Nigeria

The invasion of Ukraine by Russia risks provoking an economic crisis that will shake Europe and Asia.

Indeed, it will lead to the isolation of the world’s 11th largest economy and one of its largest commodity producers.

The immediate global implications will be higher inflation, weaker growth and some disruption to financial markets as tougher sanctions take hold.

The longer-term fallout will be a further weakening of the system of globalized supply chains and integrated financial markets that has dominated the global economy since the collapse of the Soviet Union in 1991.

From all indications, Ukraine’s economy is an emerging market economy.

It grew rapidly from 2000 to 2008, when the Great Recession started around the world and reached Ukraine during the Ukrainian financial crisis of 2008-2009.

The economy recovered in 2010 and continued to improve until 2013. From 2014 to 2015, the Ukrainian economy suffered a severe downturn, with GDP in 2015 being slightly more than half of its value in 2013.

In 2016, the economy started to grow again. In 2018, the Ukrainian economy was growing rapidly and had reached almost 80% of its size in 2008.

Here’s what’s rocking the Ukrainian economy:

Mining

Ukraine has extremely rich and complementary mineral resources in high concentrations and in close proximity to each other. The country has abundant reserves of coal, iron ore, natural gas, manganese, salt, petroleum, graphite, sulfur, kaolin, titanium, nickel, magnesium, timber and mercury.

Metallic minerals:

The country is ranked 7th in the world for iron extraction: 39 million tons and 2.4% of world production (after Australia, China, Brazil, India, Russia and RSA)

The country ranks 8th in the world in manganese extraction, producing around 651,000 tons, or around 3.6% of world production (after South Africa, Australia, China, Gabon, Brazil , Ghana and India).

Ukraine is ranked 6th in the world for titanium mining: 431,000 tons, or 6.3% of world production (after China, South Africa, Australia, Canada and Mozambique)

It also ranks second in the world in the extraction of gallium: 9 tonnes and 2.9% of world production (after China)

Ukraine ranks 5th in the world in germanium mining after China, Russia, the United States and Japan.

Non-metallic minerals:

The country ranks 6th in the world in the extraction of kaolins and represents 5.9% of world production (after China, the United States, Germany, India and the Czech Republic)

It is the 10th place in the world in the extraction of zirconium silicate producing 26,000 tons after Australia, RSA, China, Mozambique, Senegal, the United States, Kenya, India and India. Indonesia.

It ranks 8th in the world in the extraction of graphite, representing 1.3% of world production after China, Brazil, North Korea, India, Russia, Canada and Madagascar.

In the field of mineral fuels, Ukraine ranks 13th in the world in the extraction of coal from power plants after China, India, the United States, Indonesia, Australia, RSA, Russia , Colombia, Kazakhstan, Poland, Vietnam and Canada)

It ranks 12th in the world in the extraction of cooking charcoal after China, Australia, Russia, the United States, India, Canada, Mongolia, Kazakhstan, Poland, Mozambique and the Colombia.

In recent years, the Ukrainian government has significantly improved and liberalized the licensing system for mineral extraction.

Christi C. Elwood