Ukraine capital inflow rises to USD 1.0 bln in 1Q16
18 May 2016
Capital inflow to Ukraine rose to USD 1.0 bln in 1Q16, or nearly triple from the same year ago period, when inflow reached USD 346 mln, reported on May 17 the State Statistics Service. Investors in the Netherlands (USD 124 mln), the United Kingdom (USD 104 mln), Switzerland (USD 92 mln) and Austria (USD 44 mln) all increased their exposure to Ukraine. Sectors with the most inflow were finances (UAH 266 mln) and retail (USD 153 mln).
In general, foreign direct investment (FDI) increased 0.7%, or USD 338 mln, in 1Q16 to USD 50.7 bln, net of the effect of hryvnia depcreciation. Factoring in the exchange rate difference, the value of FDI fell USD 634 mln.
Alexander Paraschiy: A large part of the investments stemmed from further recapitalization in the banking sector. Economic stabilization also played a role, as evidenced by 1Q16 industrial growth of 3.7% yoy, 1Q16 GDP growth of 0.1% yoy and a stabilized national currency. We see strong chances to see this year much higher capital inflow than 2015’s result of USD 3.8 bln, even once the recapitalization effect fades away.
