Foreign investment in Ukraine: trends change
In the first nine months of 2016, foreign investment in Ukraine continues to grow.
In January-September, the share of non-residents’ equity increased by almost 50% to 3.8 billion USD over the same period last year.
“Equally important is the fact that reducing the outflow of capital during this period. In the first nine months of 2016 the output of foreign capital amounted to 0.46 billion USD , compared to 0.53 billion USD, in January-September 2015. At the same time, foreign investment growth rates show a clear tendency to slow down, “- said the expert.
Among the 22 regions of Ukraine, two-thirds of a positive result, providing five territorial units: Kharkiv, Kiev, Lviv, Odessa, Mykolaiv (in descending order of positive result). The best rates are found for the Kharkiv region – for the first nine months of foreign investment growth amounted to 116.2 million USD. Indicators of the other four areas range between 22-35 million USD.
The main area of attraction of direct foreign investment – traditionally Kiev (almost 90%). The reason – the registration of foreign investments at the place of head office (in almost all banks in Kiev it).
In the Transcarpathian, Cherkasy and Poltava recorded a significant growth of foreign investment against the backdrop of a sharp increase in the positive balance for the first nine months.
In areas where capital outflow exceeds the inflow, there is a tendency to slow down this process. Such changes suggest that foreign investment is gradually beginning to return to the regional level.
