Kiev. Ukraine. Ukraine Gate – February 11, 2021 – Economy
The strengthening of the raw material orientation of the national economy continues. The contraction of global business activity is deepening the crisis in the Ukrainian economy, which is overly dependent on foreign markets.
According to Oleksandr Honcharov, “today the import of goods containing intellectual rent to Ukraine is actually equivalent to the import of inflation. By the way, according to the State Statistics Service, in January 2021, inflation in annual terms compared to January 2020 accelerated to 6.1%.
However, by exporting only national natural resources, we are actually changing the natural rent to inflation, while the excess profits remain abroad. And this non-equivalent exchange does not lead to anything good, especially for our economy and the real incomes of Ukrainians.
We are only becoming more and more vulnerable and dependent on the outside world, which is what we see in a coronavirus pandemic. Moreover, in terms of economic activity, in terms of industrial production, we have lost too much during this crisis, much more than other countries.”
It should be noted that Ukrainian exports are low value-added goods, which deepens the raw material orientation of the national economy and accelerates the decline of industrial potential.
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