We can report sufficiently bad piece of news for Ukrainian economic sector: foreign direct investment (FDI) in Ukraine has decreased by 10.6%
FDI in Ukraine in the form of shareholders' equity at April 1, 2014 amounted to $ 52.18 billion, what is $ 6.21 billion, or 10.6% less than at the beginning of the year, the State Statistics Service (SSS) reported in Thursday, 31 July 2014.
According to its data, resident in January-March this year invested $ 570.2 million and simultaneously seized $ 468.4 million, but the negative exchange difference of $ 6.28 billion.
In the first quarter of last year, foreign investors have invested $ 1.56 billion, withdrew $ 562 million, and a negative exchange differences amounted to $ 209 million.
Triple S specifies that the volume of FDI made in Ukraine at the beginning of April this year amounted to $ 1,152 thousand per inhabitant compared to $ 1,284 thousand at the beginning of the year. As reported, in 2013 FDI in Ukraine increased by $ 2.86 billion, just a year ago at $ 4.13 billion. Foreign investors last year invested in the Ukrainian economy $ 5.677 billion (previous year – $ 6.013 billion), at the same time withdrew $ 2.845 billion ($ 1.256 billion).
According to the Statistics Committee, for three months in 2014 investments came from 134 countries. The ten major investor countries, which account for over 83% of total direct investment include: Cyprus – $ 16.534 billion, Germany – $ 6.033 billion, the Netherlands – $ 5.523 billion, the Russian Federation – $ 3.538 billion, Austria – $ 2.891 billion, UK – $ 2.401 billion , Virgin Islands (British) – $ 2.225 billion, France – $ 1.783 billion, Switzerland – $ 1.320 billion, and Italy-$ 1,101 billion.
Industrial enterprises are concentrated $ 16.893 billion (32.4%) of direct investment, including processing – $ 13.771 billion, mining and quarrying – $ 1.667 billion in the supply of electricity, gas and air conditioned – $ 1.373 billion
In enterprises of metallurgical production, fabricated metal products, except machinery and equipment, invested $ 5.862 billion of direct investment in the production of food, beverages and tobacco – $ 2.96 billion, manufacture of rubber and plastic products, other non-metallic mineral products – $ 1.386 billion, engineering – $ 1.131 billion, the manufacture of chemicals and chemical products – $ 1.092 billion.
In the institutions of financial and insurance activities accumulated $ 12.962 billion (24.8% of total) direct investment in enterprises in wholesale and retail trade; repair of motor vehicles and motorcycles – $ 6.406 billion (12.3%) organizations engaged in real estate transactions – $ 4.216 billion (8.1%), professional, scientific and technical activities – $ 3.406 billion (6.5%).
Debt of Ukrainian enterprises loans, trade credits and other liabilities (debt instruments) to direct investors on April 1, 2014 was $ 10,462 billion.
Total foreign direct investment (equity and debt) on April 1, 2014 amounted to $ 62.641 billion
Foreign direct investment (equity) of Ukraine in the world economy on April 1, 2014 was $ 6.608 billion, including the EU – $ 6.068 billion (91.8% of total), other countries of the world – $ 540.3 million (8.2 %).
Direct investment from Ukraine implemented in 47 countries, the overwhelming proportion of their aims in Cyprus (88%).
Requirements Ukrainian direct investors for debt instruments direct investment enterprises abroad on April 1, 2014 amounted to $ 198 million.
Total direct investment (equity and debt instruments) in the economy of the world amounted to $ 6,806 billion
What is it?
Foreign direct investment are long-term investments materiel non-resident in the economy (for example, for the organization and construction companies). Calculated in million of U.S. dollars.
Foreign direct investment is the most popular form of investment in developing economies, as it allows us to implement large-scale projects; In addition new technology, new corporate governance practices, etc. comes to the country.
In conclusion, we show a graph of the foreign direct investment in Ukraine in recent years to summarize all the tables above. As you can see there is no pattern, no systematic. Doctors looking at such temperature chart usually diagnose the dengue fever.
It apparently shows how difficult situation we now have in Ukrainian ecenomoy, as the investing clinate is one of the main indicators of state health. In its turn, economy shows the real situation in the country as when it no money in the budget, there are no abilities for normal life and escape from crisis. Ukraine is now deeply ill and this is a result of systematically awful politics and capital redistribution after fall of USSR. Recent events with governmental overturn just showed real lie of the land. Ukraine is collapsing and without strict and unpopular decision we will spend a lot of time in vain. As for now, we can surely say that Ukrainian transition to capitalist system is very problematic. Maybe the hardest in the world history.