Ukraine’s economic resilience & strategic path forward: Insights from a joint study by the German Economic Team and AHK Ukraine Ukraine
Together with the AHK Ukraine, the authors (Robert Kirchner, Garry Poluschkin, Dr. Julian Ries, Thomas Otten) have identified 30 concrete reform proposals to improve Ukraine’s investment climate. While Ukraine’s economy grew by 5% in 2023, this growth followed a sharp decline of 29% in wake of the Russian attack in 2022. In the future, Ukraine must develop a sustainable growth strategy, unlocking all potential drivers of growth.
Prior to the conflict, Ukraine’s economy was primarily driven by the private sector, which significantly contributed to employment, gross value added (GVA), and gross fixed capital accumulation. Despite this, the engagement of foreign investment was low, highlighting a critical area for enhancement in Ukraine’s economic recovery strategy. Therefore, Ukraine has to develop a strategy for attracting foreign direct investment.
Our study outlines comprehensive reform proposals for improving Ukraine’s investment climate. These reforms, derived from a detailed bottom-up analysis, based on survey data from AHK Ukraine’s corporate members, target the improvement of legal frameworks, human resources, taxation, and accounting practices. They also focus on sector-specific enhancements in banking, energy, agriculture, IT, and construction, aiming to create a more level playing field for businesses. Hereby, we have intentionally focused on implementability, i.e. measures that are relatively easy to realise and have the potential to generate “quick wins”.
Our joint study has also been presented at the AHK’s general assembly in Kyiv. We were also delighted to discuss our proposals on a panel with distinguished experts. We would like to thank the AHK for the cooperation and the organisation of the event.
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