rts of energy, especially
natural gas, to meet some 85% of its annual energy requirements.
Shortly after independence in December 1991, the Ukrainian
Government liberalized most prices and erected a legal framework for
privatization, but widespread resistance to reform within the
government and the legislature soon stalled reform efforts and led
to some backtracking. Output by 1999 had fallen to less than 40% of
the 1991 level. Loose monetary policies pushed inflation to
hyperinflationary levels in late 1993. Ukraine's dependence on
Russia for energy supplies and the lack of significant structural
reform have made the Ukrainian economy vulnerable to external
shocks. Ukrainian government officials have taken some steps to
reform the country's Byzantine tax code, such as the implementation
of lower tax rates aimed at bringing more economic activity out of
Ukraine's large shadow economy, but more improvements are needed,
including closing tax loopholes and eliminating tax privileges and
exemptions. Reforms in the more politically sensitive areas of
structural reform and land privatization are still lagging. Outside
institutions - particularly the IMF - have encouraged Ukraine to
quicken the pace and scope of reforms. GDP in 2000 showed strong
export-based growth of 6% - the first growth since independence -
and industrial production grew 12.9%. The economy continued to
expand in 2001 as real GDP rose 9% and industrial output grew by
over 14%. Growth of 4.6% in 2002 was more moderate, in part a
reflection of faltering growth in the developed world. In general,
growth has been undergirded by strong domestic demand, low
inflation, and solid consumer and investor confidence. Growth was a
sturdy 9.3% in 2003 and a remarkable 12% in 2004, despite a loss of
momentum in needed economic reforms.

GDP (purchasing power parity):
$299.1 billion (2004 est.)

GDP - real growth rate:
12% (2004 est.)

GDP - per capita:
purchasing power parity - $6,300 (2004 est.)

GDP - composition by sector:
agriculture: 18%
industry: 45.1%
services: 36.9% (2004 est.)

Labor force:
21.11 million (2004 est.)

Labor force - by occupation:
agriculture 24%, industry 32%, services 44% (1996)

Unemployment rate:
3.5% officially registered; large number of unregistered or
underemployed workers; the International Labor Organization
calculates that Ukraine's real unemplo