By the end of 2014, Ukraine had lost seven per cent of its territory through secret, but increasingly open aggression from Russia. These regions – stretching from Luhansk to the Azov coast – formed the basis of Ukraine’s industrial base and contributed about 17% to its GDP according to the country’s National Bank.
As a result, Ukraine’s GDP shrank by 6.7% by the end of the 2014. At the start of 2014, these lost territories were still making payments to the central budget, which is why the contraction was not greater. Basic sectors such as agriculture, construction, industry, as well as wholesale and retail trading fell by 10%. But it’s not possible to blame all of this on Russia. Ukraine has shown poor economic indicators in recent years.
Unfavourable comparisons
In 1990, Poland, a country of 38 million, had a GDP smaller than Ukraine, with a population of 52 million. 23 years later, Poland’s GDP (measured in dollars) had grown more than 800% and its population has grown by almost 400,000. Ukraine’s economy has grown by only two-and-a-half times and its population has decreased by almost 6.5 million people – a genuine demographic crisis.
