structural reform have made the Ukrainian economy vulnerable to
external shocks. A dispute with Russia over pricing in late 2005 and
early 2006 led to a temporary gas cut-off; Ukraine concluded a deal
with Russia in January 2006 that almost doubled the price Ukraine
pays for Russian gas, and could cost the Ukrainian economy $1.4-2.2
billion. Ukrainian Government officials eliminated most tax and
customs privileges in a March 2005 budget law, bringing more
economic activity out of Ukraine's large shadow economy, but more
improvements are needed, including fighting corruption, developing
capital markets, and improving the legislative framework for
businesses. 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 growth was 6% in 2006, up
from 2.4% in 2005 mainly because of high steel prices worldwide and
strong demand for Ukrainian goods. The privatization of the
Kryvoryzhstal steelworks in late 2005 produced $4.8 billion in
windfall revenue for the government. Some of the proceeds were used
to finance the budget deficit, some to recapitalize two state banks,
some to retire public debt, and the rest may be used to finance
future deficits. Although the economy is likely to expand in 2007,
long-term growth could be threatened by the government's plans to
reinstate tax, trade, and customs privileges and to maintain
restrictive grain export quotas.

GDP (purchasing power parity):
$355.8 billion (2006 est.)

GDP (official exchange rate):
$81.53 billion (2006 est.)

GDP - real growth rate:
6% (2006 est.)

GDP - per capita (PPP):
$7,600 (2006 est.)

GDP - composition by sector:
agriculture: 17.5%
industry: 42.7%
services: 39.8% (2006 est.)

Labor force:
21.69 million (2006 est.)

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

Unemployment rate:
2.9% officially registered; large number of unregistered or
underemployed workers; the International Labor Organization
calculates that Ukraine's real unemployment level is around 9-10%
(2006 est.)

Population below poverty line:
29% (2003 est.)

Household income or consumption by percentage share:
lowest 10%: 3.4%
highest 10%: 24.8% (2005)

Distribution of family income - Gi