Wednesday, June 18, 2014

“Everything is annihilated”: the split of Ukraine on the basis of economic data (important text).

Ukraine showed itself and the world in 2013 that the country is not important: instead of the planned 3.4% economic growth, it achieved something close to zero. 2013 was a negative year for almost all its economic sectors, except for agriculture (industry decreased by -4.7%). Most experts expect no more than 1% GDP growth in 2014. The irony is that the final fall into the abyss of economic crisis was prevented only by trade with Russia. But in 2014 even trade with Russia will do nothing to prevent that: The budget deficit for 2014 is 4.3% of GDP. The worst thing is that, economically speaking, the two halves of the country vary even more than the Czech Republic and Slovakia once did.

For example, the share of the Donetsk and Dnepropetrovsk regions of total Ukrainian exports is 35% , whilst the 7 most western regions (some of which have a serious historical bonus), make up for just 1/14 of Ukrainian exports. Regionally speaking, the highest number of people living below the poverty line can be found in the north-western and south-central regions (in the Lvov region, 30% of the people live around the poverty line).

CC Photo Google Image Search Source is darussophile com  Subject is ukraine economy

The title of this map is “export per region as percentage of the total export, january-november 2013″.

The stronger the colour red is, the larger the share of exports. The regions Dnepropetrovsk (15,6) and Donetsk (19,7) stand out together with the city of Kiev (19,1).

Eastern Regions (total): 58,1%

Kiev and Sevastopol (total): 19,3%

Central Regions (total): 15,1%

Western Regions (total) 7,5%

Source:ukrstat.gov.ua. Original: sputnikipogrom.com

The Human Development Index of Ukraine as a whole is predictably bad but, eastern Kharkov (0,559) is well ahead of western Ternopol (0,475) and the city called “Window to Europe”, Uzhgorod (0,492).

If one looks at the map of the protests, it becomes obvious that the poor western half of the country is rebelling. In the past year, from all regions in the west of the country only the Lvov, Sumy and Cherkasy regions managed to do relatively well (but they managed it thanks to relatively low levels of subventions otherwise they would experience strong negative growth as well), all the others experienced a strong loss in economic activity.

The development of the regions in Ukraine over the past 15 years has been extremely uneven: the GRP (Gross Regional Product) of the Dnepropetrovsk region increased 20.3 times whilst none of the western regions managed to achieve an increase by more than 11.9 times. This means that, whilst the Eastern regions managed to do quite well, the western regions, for unknown regions, managed to lag seriously behind the East (the Eastern regions performed almost two times better). That is why the average salary in the East is 1,5 times more than in the West and the gap is only increasing.

Complete story at - “Everything is annihilated”: the split of Ukraine on the basis of economic data (important text).

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