Ukraine capital investment increases 16% yoy in 2019

Capital investment in Ukraine increased 15.5% yoy in
2019, slightly slowing from 16.4% yoy in 2018, the State Statistics Service
reported on Feb. 24. In particular, industrial capital investments rose 34.7%
yoy while capital investments in agriculture dropped 10.0% yoy.

The majority of capital investment was channeled to
machinery and equipment (34.0%), engineering facilities (22.6%) and
nonresidential buildings (15.4%). The major source of investment financing was
companies’ own funds (68.1%). Local and state budgets funds made up 9.6% and
5.0% of total investment, while bank and other loans financed 7.0%.

Evgeniya Akhtyrko: Capital investment is growing fast, but the volume of investment is not
sufficient to make the drastic changes in Ukraine’s economic structure that
would help to reach a breakthrough in economic growth. Companies’ own funds
remains the major source of investment while the access of Ukrainian companies
to bank loans remains low due to high interest rates and the overall high risk
of the economy.